Published on 9/27/2023 in the Prospect News Investment Grade Daily.
New Issue: Western Midstream prices $600 million 6.35% senior notes due 2029 at 170 bps spread
By Wendy Van Sickle
Columbus, Ohio, Sept. 27 – Western Midstream Operating, LP priced $600 million of 6.35% senior notes due Jan. 15, 2029 (Baa3/BBB-/BBB-) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.786 to yield 6.401%, or a spread over Treasuries of 170 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 help fund the company’s acquisition of Meritage Midstream Services II, LLC, a midstream company based in Denver, and for general partnership purposes.
The Woodlands, Tex.-based company owns, develops and operates midstream energy assets.
| Issuer: | Western Midstream Operating, LP
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| Amount: | $600 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2029
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., BofA Securities, Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC and U.S. Bancorp Investments, Inc.
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| 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: | 6.35%
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| Price: | 99.786
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| Yield: | 6.401%
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| Spread: | Treasuries plus 170 bps
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| Call features: | Make-whole call before Dec. 15, 2028 at Treasuries plus 30 bps; thereafter at par
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| Trade date: | Sept. 27
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| Settlement date: | Sept. 29
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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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| Cusip: | 958667AF4
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