Published on 3/30/2023 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Western Midstream prices $750 million 6.15% 10-year senior notes at 262.5 bps spread
By Wendy Van Sickle
Columbus, Ohio, March 30 – Western Midstream Operating, LP priced $750 million of 6.15% 10-year senior notes (Baa3/BBB-/BB+) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.728 to yield 6.187%, or a spread over Treasuries of 262.5 basis points.
TD Securities (USA) LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Deutsche Bank Securities Inc. were the bookrunners.
Proceeds will be used to repay borrowings under the company’s revolving credit facility and for general partnership purposes. As of Dec. 31, WES Operating had approximately $375 million of outstanding borrowings under the facility with an additional $5.1 million letters of credit outstanding.
The Woodlands, Tex.-based company owns, develops and operates midstream energy assets.
| Issuer: | Western Midstream Operating, LP
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| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | April 1, 2033
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| Bookrunners: | TD Securities (USA) LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Deutsche Bank Securities Inc.
|
| Co-managers: | RBC Capital Markets, LLC, Scotia Capital (USA) Inc., Truist Securities, Inc., Zions Direct, Inc., Comerica Securities, Inc. and Stifel, Nicolaus & Co., Inc.
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Sidley Austin LLP
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| Counsel to underwriters: | Gibson, Dunn & Crutcher LLP
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| Coupon: | 6.15%
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| Price: | 99.728
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| Yield: | 6.187%
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| Spread: | Treasuries plus 262.5 bps
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| Call features: | Make-whole call before Jan. 1, 2033 at Treasuries plus 40 bps; thereafter at par
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| Trade date: | March 30
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| Settlement date: | April 4
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BB+
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| Distribution: | SEC registered
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| Cusip: | 958667AE7
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