By Andrea Heisinger
Omaha, June 5 - Panhandle Eastern Pipe Line Co., LP priced $400 million in 7% 10-year senior notes on Thursday to yield Treasuries plus 300 basis points, a market source said.
The notes (Baa3/BBB-/BBB) priced at 99.715 to yield 7.04% with a make-whole redemption option of Treasuries plus 50 bps.
Bookrunners were Credit Suisse Securities, Banc of America Securities LLC and J.P. Morgan Securities Inc.
Proceeds will be used initially as a loan to parent company Southern Union Co., which will use them to repay outstanding debt under a revolving credit agreement.
The company operates a natural gas pipe line and is based in Houston.
| Issuer: | Panhandle Eastern Pipe Line Co., LP
|
| Issue: | Senior notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2018
|
| Bookrunners: | Credit Suisse Securities, Banc of America Securities LLC, J.P. Morgan Securities Inc.
|
| Coupon: | 7%
|
| Price: | 99.715
|
| Yield: | 7.04%
|
| Spread: | Treasuries plus 300 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | June 5
|
| Settlement date: | June 12
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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