NGPL PipeCo sets price talk in $1.4 billion two-part bullet deal; pricing in Tuesday drive-by

By Paul A. Harris

Portland, Ore., July 25 – NGPL PipeCo LLC plans to price $1.4 billion of senior bullet notes (Ba1) in a quick-to-market Tuesday transaction, according to market sources.

The Rule 144A for life deal features five-year notes talked at 4 3/8% to 4 5/8%, tight to initial guidance of 4½% to 4¾%.

The long tranche features 10-year notes talked at 5% to 5¼%, tight to initial guidance of 5 1/8% to 5 3/8%.

The deal was marketed by means of a late-morning conference call with investors.

Books close at 1:30 p.m. ET on Tuesday, and the deal is set to price thereafter.

Joint active bookrunner RBC Capital Markets LLC will bill and deliver. Barclays is also a joint active bookrunner. Wells Fargo Securities LLC is the joint bookrunner. Seaport Global Securities LLC is the co-manager.

The notes in both tranches feature make-whole calls and 101% poison puts.

The five-year notes have a par call three months prior to maturity. The 10-year notes have a par call six months prior to maturity.

Proceeds will be used to fund the purchase, via tender offer or redemption, of all of the company's outstanding 7.119% senior notes due 2017 and to repay borrowings under its revolving credit facility.

NGPL is a Houston-based owner and operator of natural gas pipelines, compression facilities and storage reservoirs.

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