Published on 12/9/2021 in the Prospect News High Yield Daily.
New Issue: Howard Midstream prices $400 million five-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Dec. 9 – Howard Midstream Energy Partners, LLC priced a $400 million issue of five-year senior notes (B3/B) at par to yield 6¾% on Thursday, according to market sources.
The yield printed at the tight end of the 6¾% to 7% yield talk and slightly inside of initial guidance in the 7% area.
The deal was heard to be playing to $1.5 billion of demand, a trader said.
Left bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., MUFG, TD Securities (USA) LLC, Truist Securities Inc., ING Financial Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc. and SMBC Nikko Securities America Inc.
The San Antonio-based energy infrastructure company plans to use the proceeds to repay debt.
| Issuer: | Howard Midstream Energy Partners, LLC
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2027
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| Left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., MUFG, TD Securities (USA) LLC, Truist Securities Inc., ING Financial Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc. and SMBC Nikko Securities America Inc.
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| Co-managers: | Cadence, Comerica Securities Inc., FHN Financial Securities Corp. and Zions
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| Coupon: | 6¾%
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| Price: | Par
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| Yield: | 6¾%
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| Spread: | 551.9 bps
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| Call protection: | Two years
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| Trade date: | Dec. 9
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| Ratings: | Moody’s: B3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% to 7%
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| Marketing: | Roadshow
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