By Paul Deckelman
New York, June 19 - Northwest Pipeline Corp. priced $175 million of 10-year senior notes Monday, just hours after the quickly shopped drive-by offering had been formally announced. High-yield syndicate sources said that the 7% coupon bonds came at a slight discount to par, pricing at 99.684 to yield 7.045%, or spread of 190 basis points over the comparable Treasury issue.
The bonds - sold under Rule 144A and Regulation S - were sold with registration rights. They are non-callable, except for a make-whole call at Treasuries plus 35 bps.
The bonds were brought to market via joint book-running managers JP Morgan and Calyon Securities, with ABN Amro, TD Securities and Wachovia Securities serving as co-managers.
Northwest Pipeline - a subsidiary of well-known high-yield issuer The Williams Cos. Inc. - plans to use the new-deal proceeds for general corporate purposes, including capital expenditures.
It was the second time in less than a week that a subsidiary of Williams, a Tulsa, Okla.-based natural gas exploration, production and pipeline company, has tapped the junk market. Last Thursday, Williams Partners LP priced a $150 million issue of 7½% senior notes due 2011 via joint bookrunners Citigroup and Lehman Brothers, along with co-managers Merrill Lynch, Wachovia and BNP Paribas.
| Issuer: | Northwest Pipeline Corp.
|
| Amount: | $175 million
|
| Issue: | Senior unsecured notes
|
| Bookrunners: | JP Morgan, Calyon Securities
|
| Maturity: | June 15, 2016
|
| Coupon: | 7%
|
| Price: | 99.684
|
| Yield: | 7.045%
|
| Spread: | 190 basis points over 5 1/8% UST 05/16
|
| Call features: | Make-whole call at 35 bps over Treasuries
|
| Settlement: | June 22 (T+3)
|
| Ratings: | Moody's: Ba1, stable
|
| S&P: BB-, positive outlook
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
|
|
© 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.
