By Paul A. Harris
Portland, Ore., Jan. 21 – Murphy Oil USA Inc. priced a $500 million issue of 10-year senior notes (Ba2/BB+) at par to yield 3¾% in a Thursday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 3 7/8% area. Initial guidance was 4% to 4 1/8%.
The deal was heard to be playing to around $5 billion of orders and traded to par 1/8 bid, par 3/8 offered, a trader said.
Left lead bookrunner RBC Capital Markets Corp. will bill and deliver. Joint bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc., Regions Securities LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc. and Truist Securities Inc.
The El Dorado, Ark.-based oil and gas exploration and production company plans to use the proceeds to fund its acquisition of QuickChek and to repay debt under Murphy Oil's senior credit agreement.
| Issuer: | Murphy Oil USA Inc.
|
| Guarantor: | Murphy USA Inc.
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| Amount: | $500 million
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| Maturity: | Feb. 15, 2031
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| Securities: | Senior notes
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| Left lead bookrunner: | RBC Capital Markets Corp. (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Regions Securities LLC, Wells Fargo Securities LLC, Fifth Third Securities Inc. and Truist Securities Inc.
|
| Co-managers: | Hancock Whitney, PNC Capital Markets LLC and UMB
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| Coupon: | 3¾%
|
| Price: | Par
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| Yield: | 3¾%
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| Spread: | 265 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2026, then callable at 101.875
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| Trade date: | Jan. 21
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| Settlement date: | Jan. 29
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| Ratings: | Moody's: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 3 7/8% area
|
| Marketing: | Drive-by
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