By Cristal Cody
Tupelo, Miss., Jan. 4 – Texas Eastern Transmission, LP (Baa1/BBB+/BBB+) priced $800 million of senior notes in a Rule 144A and Regulation S two-tranche offering on Thursday, according to a market source.
The company sold $400 million of 3.5% 10-year notes with a spread of 110 basis points over Treasuries.
Texas Eastern Transmission priced $400 million of 4.15% 30-year notes at a Treasuries plus 140 bps spread.
Both tranches priced tighter than initial price talk.
Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Texas Eastern Transmission is a Houston-based natural gas storage and transporter provider and subsidiary of Spectra Energy.
| Issuer: | Texas Eastern Transmission, LP
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc. and SunTrust Robinson Humphrey, Inc.
|
| Trade date: | Jan. 4
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2028
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 110 bps
|
| Price guidance: | Treasuries plus 120 bps area
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2048
|
| Coupon: | 4.15%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 150 bps area
|
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