Published on 8/4/2020 in the Prospect News Investment Grade Daily.
New Issue: Boardwalk Pipelines prices $500 million of 3.4% notes due 2031 at 290 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 4 – Boardwalk Pipelines, LP sold $500 million of 3.4% senior notes due Feb. 15, 2031 (Baa3/BBB-/BBB-) at 99.886 to yield 3.413%, or a spread of 290 basis points over Treasuries, on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes were talked to print with a spread in the 325 bps over Treasuries area.
Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, BMO Capital Markets Corp., Citigroup Global Markets Inc., Regions Securities LLC, TD Securities (USA) LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were the bookrunners.
The notes are fully and unconditionally guaranteed by parent company Boardwalk Pipeline Partners, LP.
Proceeds will be used for general partnership purposes, including debt repayment, to fund acquisitions and capital expenditures and for additions to working capital.
Boardwalk Pipelines is a Houston-based owner and operator of natural pipelines and storage facilities.
| Issuer: | Boardwalk Pipelines, LP
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| Guarantor: | Boardwalk Pipeline Partners, LP
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Feb. 15, 2031
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| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, BMO Capital Markets Corp., Citigroup Global Markets Inc., Regions Securities LLC, TD Securities (USA) LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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| Co-managers: | BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
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| Coupon: | 3.4%
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| Price: | 99.886
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| Yield: | 3.413%
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| Spread: | Treasuries plus 290 bps
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| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 45 bps before Nov. 15, 2030; thereafter at par
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| Trade date: | Aug. 4
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| Settlement date: | Aug. 11
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 325 bps area
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