By Aleesia Forni
Virginia Beach, March 9 – Spectra Energy Partners LP sold a $1 billion two-part offering of senior notes (Baa2/BBB/) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The sale included $500 million of 3.5% 10-year notes priced at 99.582 to yield 3.55%, or Treasuries plus 135 basis points.
There was also a $500 million tranche of 4.5% notes due 2045 priced at 99.234 to yield 4.547% with a spread of Treasuries plus 175 bps.
Both tranches priced tighter than price talk.
J.P. Morgan Securities LLC, BofA Merrill Lynch and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Proceeds will be used to fund the acquisition of certain subsidiaries from Spectra Energy Corp.
The natural gas transmission and production company is based in Houston.
| Issuer: | Spectra Energy Partners LP
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., SMBC Nikko Securities America, Inc.
|
| Trade date: | March 9
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.582
|
| Yield: | 3.55%
|
| Spread: | 135 bps over Treasuries
|
| Price talk: | 150 bps area over Treasuries
|
| Make-whole call: | 20 bps over Treasuries
|
|
|
| 30-year bonds
|
| Amount: | $500 million
|
| Maturity: | March 15, 2045
|
| Coupon: | 4.5%
|
| Price: | 99.234
|
| Yield: | 4.547%
|
| Spread: | 175 bps over Treasuries
|
| Price talk: | 190 bps area over Treasuries
|
| Make-whole call: | 25 bps over Treasuries
|
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