By Paul A. Harris
Portland, Ore., Feb. 22 – Tallgrass Energy Partners, LP priced a $400 million issue of Prairie Acquiror LP 5.5-year senior secured notes (B3/B) at par to yield 9% on Thursday, according to market sources.
The yield printed at the tight end of the 9% to 9¼% yield talk. Initial guidance was 9¼% to 9½%.
J.P. Morgan Securities LLC was the lead.
The Leawood, Kan.-based energy infrastructure company plans to use the proceeds plus its amended and restated term loan to refinance all or a portion of its existing term loan, with the remainder of the proceeds to be used for general partnership purposes.
Prairie Acquiror, directly or indirectly, owns 100% of the ownership interests in Tallgrass Energy Partners.
| Issuer: | Prairie Acquiror LP
|
| Amount: | $400 million
|
| Issue: | Senior secured notes
|
| Maturity: | Aug. 1, 2029
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 467 bps
|
| Call protection: | Two years
|
| Trade date: | Feb. 22
|
| Settlement date: | March 6
|
| Ratings: | Moody’s: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
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