By Paul A. Harris
St. Louis, June 2 - Tesoro Corp. priced a $300 million issue of 9¾% 10-year senior notes (Ba1/BB+/) at 96.172 to yield 10 3/8% on Tuesday, according to an informed source.
The yield came tight to the 10½% area yield talk, while the issue price came within the price talk specifying about 4 points of original issue discount.
J.P. Morgan Securities Inc., Banc of America Securities LLC, Wachovia Capital Markets LLC and RBS Securities Inc. were joint bookrunners for the quick-to-market Securities and Exchange Commission-registered offering.
Co-managers are BNP Paribas Securities Corp., Calyon Securities (USA) Inc., Daiwa Securities America Inc., Fortis Securities LLC, Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., Natixis Bleichroeder Inc., PNC Capital Markets LLC and Scotia Capital (USA) Inc.
Proceeds will be used for general corporate purposes.
The issuer is a San Antonio-based independent petroleum refiner and marketer.
| Issuer: | Tesoro Corp.
|
| Face amount: | $300 million
|
| Proceeds: | $288.516 million
|
| Maturity: | June 1, 2019
|
| Security description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC, Wachovia Capital Markets, LLC, RBS Securities Inc.
|
| Coupon: | 9¾%
|
| Price: | 96.172
|
| Yield: | 10 3/8%
|
| Spread: | 670 bps
|
| Call features: | Callable on June 1, 2014 at 104.875, 103.25, 101.625, par on and after June 1, 2017
|
| Equity clawback: | 35% at 109.75 until June 1, 2012
|
| Change-of-control put: | Put at 101%
|
| Trade date: | June 2
|
| Settlement date: | June 5
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 10½% area with about 4 points of OID
|
© 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.
