Western Refining Logistics shops $300 million eight-year senior notes; pricing later in week

By Paul Deckelman

New York, Feb. 2 – Western Refining Logistics, LP and its wholly owned subsidiary, WNRL Finance Corp., were heard by high-yield syndicate sources on Monday to be shopping a $300 million offering of senior notes due 2023 (B3/B) to potential investors.

The Rule 144A and Regulation S offering, with registration rights, is expected to price later this week.

The offering will be brought to market via joint global coordinators BofA Merrill Lynch and Wells Fargo Securities LLC and joint bookrunners Credit Agricole CIB, RBS Securities Inc. and Stifel Nicolaus & Co. Inc.

Barclays, Comerica Bank, Deutsche Bank Securities Inc., PNC Capital Markets LLC, RBC Capital Markets Corp. Regions Bank and UBS Securities LLC will be the co-managers.

The notes will have three years of call protection and then will first be callable at par plus 75% of the coupon.

The indenture will also contain a standard equity clawback provision allowing for the repurchase of up to 35% of the notes during their first three years of issue using equity proceeds, and a change-of-control provision allowing holders to receive 101% plus accrued interest.

Western Refining Logistics, an El Paso, Texas-based operator of pipelines, storage tanks and other midstream energy facilities, intends to use a portion of the net proceeds from the private placement to repay the outstanding balance of its revolving credit facility, with the remaining amount to be used for general partnership purposes.

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