By Paul A. Harris
Portland, Ore., Dec. 10 – Genesis Energy, LP and Genesis Energy Finance Corp. priced an upsized $750 million issue of senior notes due Jan. 15, 2027 (B1/B+) at par to yield 8% in a Thursday drive-by, according to market sources.
The issue size increased from $550 million, a size at which the entire issue was spoken for by reverse inquiry, according to a bond trader.
The yield printed 12.5 basis points through price talk in the 8¼% area. Initial guidance was in the 8¾% area.
The order books were six to seven times the size of the deal, sources said.
The notes rallied hard in the secondary market, heading out Thursday at 102 bid, 102½ offered.
Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Capital One Securities Inc., Scotia Capital (USA) Inc., BBVA Securities Inc., Fifth Third Securities Inc. and Regions Securities LLC.
The Houston-based midstream energy master limited partnership plans to use the proceeds to repay its outstanding senior notes due 2023, to pay down its revolving credit facility and for general corporate purposes. The incremental proceeds resulting from the $200 million upsizing of the deal will be used to pay down debt under the revolver.
| Issuers: | Genesis Energy, LP and Genesis Energy Finance Corp.
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| Amount: | $750 million, increased from $550 million
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| Maturity: | Jan. 15, 2027
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| Securities: | Senior notes
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| Left lead bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Capital One Securities Inc., Scotia Capital (USA) Inc., BBVA Securities Inc., Fifth Third Securities Inc. and Regions Securities LLC
|
| Co-manager: | Raymond James & Associates Inc.
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Spread: | 749 bps
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| First call: | Jan. 15, 2024 at 104
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| Trade date: | Dec. 10
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| Settlement date: | Dec. 17
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| Ratings: | Moody's: B1
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| S&P: B+
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| Distribution: | SEC registered
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| Price talk: | 8¼% area
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| Marketing: | Drive-by
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