Genesis Energy to sell $550 million five-year notes to fund tender for 6˝% bonds due 2025

By Paul A. Harris

Portland, Ore., Nov. 30 – Genesis Energy, LP and Genesis Energy Finance Corp. plan to price a $550 million public offering of senior notes due March 2029 in a Thursday drive-by trailing a conference call with investors, according to market sources.

Initial guidance is in the high 8% to 9% area, according to a bond trader, who looks for the deal to ultimately price well inside of that guidance.

The five-year notes become subject to an initial call in January 2026 at par plus 50% of the coupon. They feature a 35% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

BofA Securities Inc., Wells Fargo Securities LLC, Capital One Securities Inc., Regions Securities LLC, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Fifth Third Securities Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc. and Truist Securities Inc. are the joint bookrunners. Comerica Securities Inc. is the co-manager.

The trustee is Regions Bank.

Counsel to the issuer is provided by Akin Gump Strauss Hauer & Feld LLP, Houston, with certain legal matters under Alabama and Louisiana law handed by Bradley Arant Boult Cummings LLP and Liskow & Lewis, A Professional Law Corp., respectively. Counsel to the underwriters is provided by Hunton Andrews Kurth LLP.

Proceeds are intended to fund a concurrent tender offer for the company’s 6˝% senior notes due 2025. As of Thursday, a $534,834,000 amount of the notes was outstanding. Proceeds will also be used for general partnership purposes, including repayment of a portion of its revolver.

Genesis Energy Finance Corp. is a subsidiary of Genesis Energy, LP, a diversified midstream energy master limited partnership with headquarters in Houston.

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