Published on 11/19/2014 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Boardwalk Pipelines sells upsized $350 million 4.95% 10-year notes at 275 bps spread
By Aleesia Forni
Virginia Beach, Nov. 19 – Boardwalk Pipelines LP sold an upsized $350 million of 4.95% 10-year senior notes (Baa3/BB+/BBB-) during Wednesday’s session at 275 basis points over Treasuries, according to an informed source and an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.82 to yield 5.101%.
Pricing was at the tight end of guidance.
Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG and Wells Fargo Securities LLC were the bookrunners.
The notes are guaranteed by Boardwalk Pipeline Partners LP.
Proceeds will be used to retire $275 million of subsidiary Gulf South’s 5.05% notes due 2015 and to reduce outstanding borrowings under Boardwalk’s revolving credit facility.
The natural gas and liquids pipeline and storage company is based in Houston.
| Issuer: | Boardwalk Pipelines LP
|
| Guarantors: | Boardwalk Pipeline Partners LP
|
| Amount: | $350 million, upsized from $275 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 15, 2024
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG, Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, a division of BB&T Securities, LLC, BBVA Securities Inc., Fifth Third Securities, Inc., Goldman, Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC
|
| Coupon: | 4.95%
|
| Price: | 98.82
|
| Yield: | 5.101%
|
| Spread: | Treasuries plus 275 bps
|
| Make-whole call: | Treasuries plus 45 bps prior to Sept. 15, 2024, then callable at par
|
| Trade date: | Nov. 19
|
| Settlement date: | Nov. 26
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor's: BB+
|
| Fitch: BBB-
|
| Price guidance: | Treasuries plus 287.5 bps area
|
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