By Andrea Heisinger
New York, Dec. 1 - Questar Pipeline Co. sold $180 million of 4.875% 30-year senior notes on Thursday to yield Treasuries plus 187.5 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (A3/A-/) were priced at 98.943 to yield 4.943%. They have a make-whole call at Treasuries plus 30 bps before June 1, 2041 and can be redeemed after that date at par.
Active bookrunners were J.P. Morgan Securities LLC and Wells Fargo Securities LLC while Barclays Capital Inc. was passive.
Co-managers were Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp Investments Inc. and RBS Securities Inc.
Proceeds are being used to repay $145.5 million of inter-company short-term debt owed to Questar Corp. and for general corporate purposes, including working capital and capital expenditures.
Questar Pipeline last priced debt in a $50 million reopening of 5.83% notes due 2018 on Sept. 8, 2009 at a spread of Treasuries plus 97 bps.
The natural gas transportation and underground storage company is based in Salt Lake City.
| Issuer: | Questar Pipeline Co.
|
| Issue: | Senior notes
|
| Amount: | $180 million
|
| Maturity: | Dec. 1, 2041
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC (active), Barclays Capital Inc. (passive)
|
| Co-managers: | Deutsche Bank Securities Inc., Mitsubishi UFJ Securities (USA) Inc., U.S. Bancorp Investments Inc., RBS Securities Inc.
|
| Coupon: | 4.875%
|
| Price: | 98.943
|
| Yield: | 4.943%
|
| Spread: | Treasuries plus 187.5 bps
|
| Call: | Make-whole at Treasuries plus 30 bps before June 1, 2041, after at par
|
| Trade date: | Dec. 1
|
| Settlement date: | Dec. 6
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
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