By Paul A. Harris
St. Louis, May 4 - Atlas Pipeline Partners LP priced a $35 million add-on to its 8 1/8% senior notes due Dec. 15, 2015 (existing ratings B1/B+) at 103.0 resulting in a 7.6% yield on Thursday, according to market sources.
Wachovia Securities ran the books for the Rule 144A add-on.
Proceeds will be used to partially repay bank debt in connection with the recent acquisition of the remaining 25% interest in Noark Pipeline System LP, previously owned by Southwestern Energy Co.
The original $250 million issue priced at par on Dec. 15, 2005. The total issue size following Thursday's add-on is $285 million.
Moon Township, Pa.-based Atlas Pipeline is a midstream energy services provider engaged in the transmission, gathering and processing of natural gas.
| Issuer: | Atlas Pipeline Partners LP
|
| Amount: | $35 million
|
| Maturity: | Dec. 15, 2015
|
| Security description: | Add-on to its 8 1/8% senior notes
|
| Bookrunner: | Wachovia Securities
|
| Coupon: | 8 1/8%
|
| Price: | 103.0
|
| Yield: | 7.6%
|
| Spread: | 245 bps
|
| Call features: | Callable after Dec. 15, 2010 at 104.063, 102.708, 101.354, par on and after Dec. 15, 2013
|
| Equity clawback: | Until Dec. 15, 2008 for 35% at 108.125
|
| Trade date: | May 4
|
| Settlement date: | May 12 with accrued interest
|
| Existing ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A
|
| Original issue: | $250 million priced at par on Dec. 15, 2005
|
| Total issue size: | $285 million
|
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