By Andrea Heisinger
New York, Jan. 7 - Sunoco Logistics Partners Operations LP priced an upsized $700 million of senior notes (Baa3/BBB-/BBB) in two maturities on Monday, an informed source said.
The sale included $350 million of 3.45% 10-year notes sold at 99.974 to yield 3.453% with a spread of Treasuries plus 155 basis points. The tranche was sold tighter than talk in the Treasuries plus 170 bps area.
The 10-year notes have a make-whole call at Treasuries plus 25 bps until Oct. 15, 2022 and a par call after that date.
Sunoco also sold $350 million of 4.95% 30-year bonds at 99.303 to yield 4.995% with a spread of 190 bps over Treasuries. The tranche was sold tighter than talk in the 210 bps area.
The bonds have a make-whole redemption at Treasuries plus 30 bps until July 15, 2042 and a par call afterward.
J.P. Morgan Securities LLC was the active bookrunner. Passive bookrunners were Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) LLC, Mizuho Securities USA Inc. and RBS Securities Inc.
Proceeds will be used to repay in full the balance outstanding under a $350 million revolving credit facility totaling $93 million and amounts outstanding under a $200 million revolver under which Sunoco Partners Marketing and Terminals LP is borrower and Sunoco Logistics is guarantor. The remainder will be used for general corporate purposes, including to partially finance a $700 million 2013 expansion capital plan.
The notes are guaranteed by Sunoco Logistics Partners, LP.
The crude oil transportation, storage and sales company is based in Philadelphia.
| Issuer: | Sunoco Logistics Partners Operations LP
|
| Guarantor: | Sunoco Logistics Partners LP
|
| Issue: | Senior notes
|
| Amount: | $700 million, upsized from $600 million
|
| Bookrunners: | J.P. Morgan Securities LLC (active), Citigroup Global Markets Inc., Mitsubishi UFJ Securities (USA) LLC, Mizuho Securities USA Inc., RBS Securities Inc. (passive)
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | 2023
|
| Coupon: | 3.45%
|
| Price: | 99.974
|
| Yield: | 3.453%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Oct. 15, 2022, par call after
|
| Price talk: | 170 bps area
|
|
|
| 30-year bonds
|
| Amount: | $350 million
|
| Maturity: | Jan. 15, 2043
|
| Coupon: | 4.95%
|
| Price: | 99.303
|
| Yield: | 4.995%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to July 15, 2042, par call after
|
| Price talk: | 210 bps area
|
© 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.
