Hess Midstream to price $500 million 8.5-year notes on Monday; initial talk 5¼% area

By Paul A. Harris

Portland, Ore., Nov. 25 – Hess Midstream Partners LP plans to price a $500 million offering of 8.5-year senior notes (Ba3/BB+) in a Monday drive-by, according to market sources.

Initial talk has the notes coming to yield in the 5¼% area.

J.P. Morgan Securities LLC is leading the deal.

The Rule 144 and Regulation S notes, which will mature in 2028, come with 3.5 years of call protection.

The Houston-based master limited partnership plans to use the proceeds to finance the acquisition of Hess Infrastructure Partners LP, as well as to partially repay debt under Hess Infrastructure's credit facility and partially fund a distribution to Hess Infrastructure's sponsors.

Hess Midstream was formed to own, operate, develop and acquire midstream assets to provide services to Hess Corp. and third-party customers. Hess Midstream’s assets are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.

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