By Devika Patel
Knoxville, Tenn., Dec. 14 – Andeavor priced a $1 billion offering of senior notes (Baa3/BBB-/BBB-) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 3.8% notes due April 1, 2028 at 99.853 to yield 3.818%, or 147 basis points over Treasuries.
Andeavor priced $500 million of 4.5% notes due April 1, 2048 at 187 bps over Treasuries. These notes were priced at 98.574 to yield 4.588%.
Citigroup Global Markets Inc., Mizuho Securities USA Inc., MUFG, ABN Amro Securities (USA) LLC, BofA Merrill Lynch, Goldman Sachs & Co., PNC Capital Markets LLC and RBC Capital Markets LLC are the bookrunners.
Proceeds will be used to repay debt under the company’s revolving credit facility and for general corporate purposes.
Andeavor, formerly known as Tesoro Corp., is a San Antonio-based marketing, logistics and refining company.
| Issuer: | Andeavor
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Mizuho Securities USA Inc., MUFG, ABN Amro Securities (USA) LLC, BofA Merrill Lynch, Goldman Sachs & Co., PNC Capital Markets LLC and RBC Capital Markets LLC
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 21
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Bonds due 2028
|
| Amount: | $500 million
|
| Maturity: | April 1, 2028
|
| Coupon: | 3.8%
|
| Price: | 99.853
|
| Yield: | 3.818%
|
| Spread: | Treasuries plus 147 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until Jan. 1, 2028 and then a par call
|
|
|
| Bonds due 2048
|
| Amount: | $500 million
|
| Maturity: | April 1, 2048
|
| Coupon: | 4.5%
|
| Price: | 98.574
|
| Yield: | 4.588%
|
| Spread: | Treasuries plus 187 bps
|
| Call feature: | Make-whole call at Treasuries plus 30 bps until Oct. 1, 2047 and then a par call
|
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