By Andrea Heisinger
New York, June 6 - Spectra Energy Partners, LP priced $500 million of senior notes (Baa3/BBB/BBB) in two parts on Monday, a source who worked on the trade said.
A $250 million tranche of 2.95% five-year notes was priced at 99.778 to yield 2.998% with a spread of Treasuries plus 140 basis points. The notes were priced at the tightest end of guidance in the 145 bps area, plus or minus 5 bps.
The notes have a make-whole call at 20 bps over Treasuries.
A $250 million tranche of 4.6% 10-year notes priced at 99.967 to yield 4.604% with a spread of Treasuries plus 160 bps. The notes were also sold at the tightest end of talk in the 165 bps area, plus or minus 5 bps.
The tranche is callable at a make-whole of 25 bps over Treasuries.
Bookrunners were Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc. and RBS Securities Inc.
Proceeds are being used to repay outstanding borrowings under a term loan, to repay all but $40 million of funds borrowed under a credit facility and for general corporate purposes.
The natural gas pipeline gathering and transportation company is based in Houston.
| Issuer: | Spectra Energy Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc., RBS Securities Inc.
|
| Trade date: | June 6
|
| Settlement date: | June 9
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | June 15, 2016
|
| Coupon: | 2.95%
|
| Price: | 99.778
|
| Yield: | 2.998%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 145 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | June 15, 2021
|
| Coupon: | 4.6%
|
| Price: | 99.967
|
| Yield: | 4.604%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 165 bps area, plus or minus 5 bps
|
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