By Andrea Heisinger
Omaha, April 2 - Questar Market Resources, Inc. priced $450 million 6.8% 10-year notes Tuesday to yield Treasuries plus 325 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB+) priced at 99.939 to yield 6.81%.
There is a make-whole redemption option of Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Banc of America Securities LLC was the bookrunner with Wachovia Capital Securities LLC as joint lead manager.
Co-managers were Barclays Capital Inc., BMO Capital Markets Corp., J.P. Morgan Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Lazard Capital Markets LLC, Greenwich Capital Markets Inc., SG Americas Securities LLC and UBS Securities LLC.
Proceeds will be used to reduce a short-term bank loan incurred in February and March 2008, with the remainder used to reduce intercompany short-term debt owed to Questar.
The subsidiary of Questar Corp. is based in Salt Lake City.
| Issuer: | Questar Market Resources, Inc.
|
| Issue: | Notes
|
| Amount: | $450 million
|
| Maturity: | April 1, 2018
|
| Bookrunner: | Banc of America Securities LLC
|
| Lead manager: | Wachovia Capital Securities LLC
|
| Co-managers: | Barclays Capital Inc., BMO Capital Markets Corp., J.P. Morgan Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Lazard Capital Markets LLC, Greenwich Capital Markets Inc., SG Americas Securities LLC, UBS Securities LLC
|
| Coupon: | 6.8%
|
| Price: | 99.939
|
| Yield: | 6.81%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | April 1
|
| Settlement date: | April 4
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
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