By Andrea Heisinger
New York, Jan. 13 - Texas Gas Transmission LLC sold an upsized $325 million of 4.5% 10-year notes on Thursday to yield 120 basis points over Treasuries, a source who worked on the deal said.
The deal size was increased from $250 million. The notes were talked with a spread in the 120 bps to 125 bps range.
The notes (Baa1/BBB/) were sold at 99.846 to yield 4.519%. There is a make-whole call at 20 bps over Treasuries.
The notes were priced under Rule 144A and Regulation S.
Barclays Capital Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repay borrowings outstanding under a revolving credit facility. The remainder of the net proceeds will be advanced or distributed to Texas Gas' parent, Boardwalk Pipelines, LP, a wholly owned subsidiary of Boardwalk Pipeline Partners, LP, to repay additional borrowings under the revolver or used for general business purposes, which may include retirement of other long-term debt.
The natural gas pipeline is based in Owensboro, Ky.
| Issuer: | Texas Gas Transmission LLC
|
| Issue: | Senior notes
|
| Amount: | $325 million, increased from $250 million
|
| Maturity: | Feb. 1, 2021
|
| Bookrunners: | Barclays Capital Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC
|
| Coupon: | 4.5%
|
| Price: | 99.846
|
| Yield: | 4.519%
|
| Spread: | Treasuries plus 120 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Distribution: | Rule 144A, Regulation S
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 19
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Price talk: | 120 bps to 125 bps
|
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