Hess Midstream driving by with $400 million 8.5-year notes; initial talk 5¾% to 6%

By Paul A. Harris

Portland, Ore., April 5 – Hess Midstream Partners LP plans to price a $400 million offering of 8.5-year senior notes (Ba2/BB+/BB+) in a Tuesday drive-by, according to market sources.

Initial guidance has the Rule 144A and Regulation S deal coming to yield 5¾% to 6%.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, MUFG, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

The notes come with 3.5 years of call protection.

The issuing entity will be Hess Midstream Operations LP, a consolidated subsidiary of Hess Midstream.

The Houston-based midstream company plans to use the proceeds to repay debt under its revolver that was used to finance the repurchase by the issuer of 13,559,322 class B units from affiliates of Hess Corp. and Global Infrastructure Partners.

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