Published on 3/11/2014 in the Prospect News Investment Grade Daily.
New Issue: Western Gas prices $500 million two-part senior notes due 2018, 2044
By Aleesia Forni
Virginia Beach, Va., March 11 - Western Gas Partners LP priced $500 million of senior notes on Tuesday in two tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company priced a $100 million add-on to its existing $250 million of 2.6% senior notes due Aug. 15, 2018.
Western Gas priced the add-on at 100.857 to yield 2.39%, or Treasuries plus 78 basis points.
The total issue size is now $350 million.
There was also $400 million of 5.45% senior notes due 2044 priced at 98.443 to yield 5.557%.
The notes sold with a spread of Treasuries plus 185 bps.
RBS Securities Inc., Mitsubishi UFJ Securities Inc., Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc. and Societe Generale were the joint bookrunners.
Western Gas plans to use the net proceeds from the offering to repay amounts outstanding under its revolving credit facility and for general corporate purposes.
The midstream energy asset company is based in the Woodlands, Texas.
| Issuer: | Western Gas Partners LP
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Joint bookrunners: | RBS Securities Inc., Mitsubishi UFJ Securities Inc., Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Societe Generale
|
| Co-managers: | BMO Capital Markets Corp., Comerica Securities, Inc., Deutsche Bank Securities Inc., DNB Markets, Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., UBS Securities LLC, Wells Fargo Securities, LLC
|
| Trade date: | March 11
|
| Settlement date: | March 20
|
| Distribution: | SEC-registered
|
|
|
| Add-on to notes due 2018
|
| Amount: | $100 million
|
| Maturity: | Aug. 15, 2018
|
| Coupon: | 2.6%
|
| Price: | 100.875%
|
| Yield: | 2.39%
|
| Spread: | Treasuries plus 78 bps
|
| Price talk: | Treasuries plus 80 bps area
|
| Total issue size: | $350 million, including $250 million priced on Aug. 5
|
| Make-whole call: | Treasuries plus 20 bps prior to July 15, 2018, then callable at par
|
|
|
| Notes due 2044
|
| Amount: | $400 million
|
| Maturity: | April 1, 2044
|
| Coupon: | 5.45%
|
| Price: | 98.443
|
| Yield: | 5.557%
|
| Spread: | Treasuries plus 185 bps
|
| Price talk: | Treasuries plus 190 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to Oct. 1, 2043, then callable at par
|
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