Tallgrass Energy to sell $500 million seven-year notes on Tuesday

By Paul A. Harris

Portland, Ore., Feb. 18 – Tallgrass Energy Partners LP and Tallgrass Energy Finance Corp. expect to price a $500 million offering of seven-year notes in a Tuesday drive-by trailing a mid-morning conference call with investors, according to a syndicate source.

Credit Suisse Securities (USA) LLC is the left lead bookrunner. Citigroup Global Markets Inc., Jefferies LLC, Blackstone, MUFG, RBC Capital Markets LLC, Barclays, PNC Capital Markets LLC, TD Securities (USA) LLC, ING Financial Markets LLC, BBVA Securities Inc., Regions Securities LLC and ABN Amro Inc.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback and a 101% poison put.

The Leawood, Kan.-based midstream energy company plans to use the proceeds to pay down the Tallgrass Energy Partners revolving credit facility and for general partnership purposes.

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