Black Hills issues $700 million two-part notes; LyondellBasell prices $1 billion; Sabra prices

By Devika Patel

Knoxville, Tenn., Sept. 26 – The investment-grade primary market was active late in the week, with three new deals announced on Thursday.

Rapid City, S.D.-based Black Hills Corp., a utility company, sold $700 million of senior notes in two parts.

LYB International Finance III LLC, a subsidiary of LyondellBasell Industries NV, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands, priced $1 billion of 4.2% 30-year notes.

Also, Irvine, Calif.-based REIT Sabra Health Care LP and Sabra Capital Corp. priced $300 million of 3.9% senior notes due 2029.

In addition, New York-based BGC Partners, Inc., a financial services company, priced $300 million of 3.75% five-year senior notes on Wednesday.

Black Hills sells $700 million

Black Hills priced $700 million of senior notes in two tranches.

The company priced $400 million of 3.05% 10-year notes at Treasuries plus 140 basis points. The notes priced at 99.656 to yield 3.09%.

Black Hills sold $300 million of 3.875% 30-year notes at a spread of 175 bps over Treasuries. These notes priced at 99.805 to yield 3.886%.

BofA Securities, Inc., U.S. Bancorp Investments Inc., BMO Capital Markets Corp. and MUFG were the bookrunners.

The company will use the proceeds to redeem or retire all of its $200 million of 5.875% notes due July 15, 2020, repay some or all of its $400 million term loan and repay some or all of its commercial paper.

LyondellBasell prices

LYB International Finance III priced $1 billion of 4.2% 30-year notes with a spread of Treasuries plus 215 bps.

The notes priced at 98.488 to yield 4.29%.

Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used to repay debt under the company’s 364-day term loan.

The notes are guaranteed by the parent, a Houston-based chemical company with executive offices in London and incorporated in the Netherlands.

Sabra prices notes

Sabra Health Care and Sabra Capital priced $300 million of 3.9% senior notes due 2029 with a spread of Treasuries plus 240 bps.

The notes priced at 98.49 to yield 4.085%.

The notes have a make-whole call feature until three months prior to maturity and then are callable at par.

The bookrunners are Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and SMBC Nikko.

BBVA Securities Inc., Fifth Third Securities Inc., Mizuho Securities USA Inc., MUFG and Scotia Capital (USA) Inc. are the co-managers.

Proceeds will be used to redeem all $200 million of Sabra’s 5.375% senior notes due 2023 and repay debt under the company’s revolver.

BGC sells $300 million

BGC Partners sold $300 million of 3.75% five-year senior notes on Wednesday.

Goldman Sachs & Co. LLC, Cantor Fitzgerald & Co., Citigroup Global Markets Inc. and PNC Capital Markets LLC were the bookrunners.

Proceeds will be used for general corporate purposes.

© 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.