Published on 4/19/2021 in the Prospect News High Yield Daily.
New Issue: Genesis Energy prices upsized $250 million tap of 8% notes due 2027 at 103.75
By Paul A. Harris
Portland, Ore., April 19 – Genesis Energy, LP priced an upsized $250 million add-on to its 8% senior notes due Jan. 15, 2027 (B1/B+) at 103.75 to yield 7.157% in a Monday drive-by, according to market sources.
The deal was upsized from $200 million.
The issue price came in the middle of the 103.5 to 104 price talk. Initial talk was 103.25 to 103.75.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Capital One Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., RBC Capital Markets LLC, Regions Securities LLC and Scotia Capital (USA) Inc.
Genesis Energy Finance Corp. was a co-issuer.
The Houston-based midstream energy master limited partnership plans to use the proceeds for general partnership purposes, including paying down its revolver.
| Issuers: | Genesis Energy, LP and Genesis Energy Finance Corp.
|
| Amount: | $250 million, increased from $200 million
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| Maturity: | Jan. 15, 2027
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| Security description: | Add-on to 8% senior notes due Jan. 15, 2027
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Capital One Securities Inc., Citigroup Global Markets Inc., Fifth Third Securities Inc., RBC Capital Markets LLC, Regions Securities LLC and Scotia Capital (USA) Inc.
|
| Co-manager: | Comerica Securities Inc.
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| Coupon: | 8%
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| Price: | 103.75
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| Yield: | 7.157%
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| Spread: | 616 bps
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| First call: | Jan. 15, 2024 at 104
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| Trade date: | April 19
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| Settlement date: | April 22
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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: | 103.5 to 104
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| Marketing: | Drive-by
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| Original issue: | $750 million priced in December 2020
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| Fungibility: | Add-on notes are expected to become fungible with original notes
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