Southern Star Central starts roadshow for $450 million eight-year notes

By Paul A. Harris

Portland, Ore., June 2 - Southern Star Central Corp. began a roadshow on Monday for a $450 million offering of eight-year senior notes (Ba1/BB+), according to an informed source.

The deal is scheduled to price late this week.

RBC Capital Markets is the left bookrunner for the Rule 144A and Regulation S for life offer. BofA Merrill Lynch is the joint bookrunner.

The notes become callable after three years at par plus 75% of the coupon, and feature a three-year 35% equity clawback at par plus the coupon, and a 101% poison put.

The Owensboro, Ky.-based interstate natural gas pipeline company plans to use the proceeds to repurchase any and all of its 6¾% senior notes due 2016, repay borrowings under its revolver, make a distribution to MSIP-SSCC Holdings, LLC, and for general corporate purposes.

© 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.