SemGroup to sell $325 million eight-year notes in Wednesday drive-by

By Paul A. Harris

Portland, Ore., March 8 – SemGroup Corp. plans to price a $325 million offering of eight-year senior notes (B2) Wednesday afternoon, trailing a mid-morning conference call with investors, according to a syndicate source.

Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., TD Securities, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Capital One and Morgan Stanley & Co. LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights deal.

The notes become callable after three years at par plus 50% of coupon and feature a three-year 35% equity clawback and a 101% poison put.

The Tulsa, Okla.-based midstream energy company plans to use the proceeds to refinance its existing 7½% senior notes due 2021.

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