Published on 6/24/2008 in the Prospect News High Yield Daily.
New Issue: Atlas Pipeline downsizes to $250 million, prices 10-year notes at par to yield 8¾%
By Paul A. Harris
St. Louis, June 24 - Atlas Pipeline Partners, LP priced a downsized $250 million issue of 10-year senior notes (B3/B-) at par to yield 8¾% on Tuesday, according to an informed source.
The yield was printed 12.5 basis points beyond the wide end of the 8½% area price talk.
The issue was downsized from $300 million.
Wachovia Securities and JP Morgan were joint bookrunners for the quick-to-market issue which was placed via Rule 144A and Regulation S with registration rights. Banc of America Securities LLC was the joint lead manager. BNP Paribas, Wells Fargo Securities and RBC Capital Markets were co-managers.
Proceeds will be used to repay bank debt.
The prospective issuer is a Moon Township, Pa., midstream energy services provider engaged in the transmission, gathering & processing of natural gas.
| Issuers: | Atlas Pipeline Partners, LP and Atlas Pipeline Finance Corp.
|
| Amount: | $250 million (decreased from $300 million)
|
| Maturity: | June 15, 2018
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Wachovia Securities, JP Morgan
|
| Lead manager: | Banc of America Securities LLC
|
| Co-managers: | BNP Paribas, RBC Capital Markets, Wells Fargo Securities
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 466 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until June 15, 2013, then callable at 104.375, 102.917, 101.458, par on and after June 15, 2016
|
| Equity clawback: | Until June 15, 2011 for 35% at 108.75
|
| Change of control put: | 101.0
|
| Trade date: | June 24
|
| Settlement date: | June 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 8½% area
|
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