Tallgrass Energy to price $500 million five-year notes on Friday; initial talk 7¾% area

By Paul A. Harris

Portland, Ore., Sept. 10 – Tallgrass Energy Partners, LP, in conjunction with Tallgrass Energy Finance Corp., plans to price a $500 million offering of five-year senior notes (expected ratings B1/BB-/BB-) on Friday, according to market sources.

The deal, which was set to kick off on an investor conference call scheduled at noon ET on Thursday, is in the market with initial talk in the 7¾% area.

Left bookrunner RBC Capital Markets Corp. will bill and deliver. Blackstone, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Raymond James & Associates is the co-manager.

The Rule 144A for life notes become callable after two years at par plus 75% of the coupon.

The Leawood, Kan.-based midstream energy company plans to use the proceeds to pay down its revolving credit facility.

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