Published on 11/17/2017 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Andeavor sells $1.75 billion fixed-rate senior notes in three parts
By Devika Patel
Knoxville, Tenn., Nov. 17 – Andeavor Logistics LP and Tesoro Logistics Finance Corp. priced $1.75 billion of fixed-rate senior notes (Ba1/BBB-) in three parts, according to an FWP filed with the Securities and Exchange Commission.
Andeavor and Tesoro sold $500 million of 3.5% five-year notes at Treasuries plus 150 bps. These notes were priced at 99.69 to yield 3.568%.
The companies priced $750 million of 4.25% 10-year notes at Treasuries plus 190 basis points. The notes priced at 99.822 to yield 4.272%.
A $500 million tranche of 5.2% 30-year notes priced at a spread of Treasuries plus 240 bps. These notes priced at 99.668 to yield 5.222%
BofA Merrill Lynch, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., MUFG, TD Securities (USA) LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Andeavor is a San Antonio-based marketing, logistics and refining company. Tesoro Logistics, also based in San Antonio, is a fee-based, growth-oriented Delaware limited partnership formed by Tesoro Corp. to own, operate, develop and acquire crude oil and refined products logistics assets.
| Issuers: | Andeavor Logistics LP and Tesoro Logistics Finance Corp.
|
| Amount: | $1.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., MUFG, TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | SMBC Nikko Securities America, Inc. and Tudor, Pickering, Holt & Co. Securities Inc.
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 28
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $500 million
|
| Maturity: | Dec. 1, 2022
|
| Coupon: | 3.5%
|
| Price: | 99.69
|
| Yield: | 3.568%
|
| Spread: | Treasuries plus 150 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until Nov. 1, 2022 and then a par call
|
|
|
| 10-year notes
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| Amount: | $750 million
|
| Maturity: | Dec. 1, 2027
|
| Coupon: | 4.25%
|
| Price: | 99.822
|
| Yield: | 4.272%
|
| Spread: | Treasuries plus 190 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Sept. 1, 2027 and then a par call
|
|
|
| 30-year notes
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| Amount: | $500 million
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| Maturity: | Dec. 1, 2047
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| Coupon: | 5.2%
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| Price: | 99.668
|
| Yield: | 5.222%
|
| Spread: | Treasuries plus 240 bps
|
| Call feature: | Make-whole call at Treasuries plus 40 bps until June 1, 2047 and then a par call
|
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