By Aleesia Forni
Virginia Beach, March 31 - Sunoco Logistics Partners Operations LP priced $1 billion of senior notes (Baa3/BBB-/) in two tranches due 2024 and 2044 on Monday, according to an informed source and a company release.
A $300 million tranche of 4.25% 10-year notes sold at 99.774 to yield 4.278%, or Treasuries plus 155 basis points.
There was also $700 million of 5.3% notes due 2044, which sold at 175 bps over Treasuries.
The notes priced at 99.836 to yield 5.311%.
Both tranches sold at the tight end of price talk.
The bookrunners are RBS Securities Inc., Barclays, PNC Capital Markets LLC, TD Securities (USA) LLC, BBVA Securities Inc., DNB Markets, Inc., SunTrust Robinson Humphrey, Inc. and J.P. Morgan Securities LLC.
Proceeds will be used to repay outstanding borrowings under the company's revolving credit facility and for general partnership purposes.
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
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Joint bookrunners: | RBS Securities Inc., Barclays, J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, BBVA Securities Inc., DNB Markets, Inc., SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Comerica Securities, Inc., Scotia Capital (USA) Inc.
|
| Trade date: | March 31
|
| Settlement date: | April 4
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Notes due 2024
|
| Amount: | $300 million
|
| Maturity: | April 1, 2024
|
| Coupon: | 4.25%
|
| Price: | 99.774
|
| Yield: | 4.278%
|
| Spread: | Treasuries plus 155 bps
|
| Price talk: | Treasuries plus 160 bps area
|
|
|
| Notes due 2044
|
| Amount: | $700 million
|
| Maturity: | April 1, 2044
|
| Coupon: | 5.3%
|
| Price: | 99.836
|
| Yield: | 5.311%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | Treasuries plus 180 bps area
|
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