By Paul A. Harris
Portland, Ore., June 16 – EQM Midstream Partners LP priced a massively upsized $1.6 billion of senior notes (Ba3/BB-/BB) in two bullet tranches on Wednesday, according to market sources.
Bookrunners were J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, TD Securities (USA) LLC, BMO Capital Markets Corp., Wells Fargo Securities LLC and Citigroup Global Markets Inc.
The deal included $700 million of five-year notes, which priced at par to yield 6%. Initial talk was in the 6½% area.
It also included $900 million of seven-year notes, which priced at par to yield 6½%. Initial talk was in the 7% area.
The combined tranches were upsized from $800 million.
Proceeds will be used to pay down a revolving credit facility and for general corporate purposes.
The issuer is a Canonsburg, Pa., master limited partnership that owns and operates interstate pipelines and gathering lines primarily serving Marcellus Shale production.
| Issuer: | EQM Midstream Partners LP
|
| Amount: | $1.6 billion, increased from $800 million
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, TD Securities (USA) LLC, BMO Capital Markets Corp., Wells Fargo Securities LLC and Citigroup Global Markets Inc.
|
| Call protection: | Non-callable
|
| Trade date: | June 16
|
| Settlement date: | June 18
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | July 1, 2025
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 565 bps
|
|
|
| Seven-year notes
|
| Amount: | $900 million
|
| Maturity: | July 1, 2027
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 594 bps
|
|
|
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