SemGroup talks $300 million 8.5-year notes to yield in 7½% area; pricing Friday

By Paul A. Harris

Portland, Ore., Sept. 14 – SemGroup Corp. talked its $300 million offering of 8.5-year senior notes (B3/B+) to yield in the 7½% area, a syndicate source said.

Books close at noon ET on Friday, and the Rule 144A and Regulation S with registration rights offering is set to price thereafter.

Credit Suisse Securities (USA) LLC, Scotia Capital, Wells Fargo Securities LLC, ABN Amro, Barclays, BBVA Securities Inc., BMO Securities and BNP Paribas Securities Corp. are the joint bookrunners.

The notes become callable at par plus 50% of the coupon after 3.5 years. They 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 pay down its revolving credit facility.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.