Published on 3/14/2014 in the Prospect News High Yield Daily.
New Issue: Martin Midstream prices $150 million tap of 7¼% notes due 2021 at 103
By Paul A. Harris
Portland, Ore., March 14 - Martin Midstream Partners LP and Martin Midstream Finance Corp. priced a $150 million add-on to their 7¼% senior notes due 2021 (B3/B-/) at 103 to yield 6.519% on Friday, according to a syndicate source.
The reoffer price came at the cheap end of the 103 to 103.5 price talk.
Wells Fargo Securities LLC was the left bookrunner. RBC Capital Markets LLC, ABN Amro Securities (USA) LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., RBS Securities Inc., Regions Securities LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Proceeds, along with borrowings under the company's revolver, will be used to redeem its remaining 8 7/8% notes due 2018.
Martin Midstream is a Kilgore, Texas-based company that collects, transports, stores and markets petroleum products and byproducts.
| Issuers: | Martin Midstream Partners LP and Martin Midstream Finance Corp.
|
| Amount: | $150 million
|
| Proceeds: | $155 million
|
| Maturity: | Feb. 15, 2021
|
| Security description: | Add-on to 7¼% senior notes due Feb. 15, 2021
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | RBC Capital Markets LLC, ABN Amro Securities (USA) LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., RBS Securities Inc., Regions Securities LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 7¼%
|
| Price: | 103
|
| Yield: | 6.519%
|
| Spread: | 501 bps
|
| Price talk: | 103 to 103.5
|
| First call: | Feb. 15, 2017 at 103.625
|
| Equity clawback: | 35% at 107.25 until Feb. 15, 2016
|
| Trade date: | March 14
|
| Settlement date: | April 1with accrued interest
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
| Original issue: | $250 million priced at par in February 2013
|
| Fungibility: | Upon registration the add-on notes will be fungible with the original notes
|
| Total issue size: | $400 million
|
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