Genesis Energy talks $750 million eight-year notes to yield 7½%-7¾%

By Paul A. Harris

Portland, Ore., Jan. 9 – Genesis Energy, LP and Genesis Energy Finance Corp. plan to price a $750 million offering of eight-year senior notes (existing ratings B1/B+) on Thursday trailing a late-morning conference call with investors, according to a syndicate source.

Price talk is 7½% to 7¾%, at the wide end of Initial guidance in the mid 7% area.

BMO Capital Markets Corp. is the left lead bookrunner for the public offering. SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, ABN Amro Inc., BBVA Securities Inc., BNP Paribas Securities Corp., BofA Securities Inc., Capital One Securities Inc., DNB Markets, Fifth Third Securities Inc., RBC Capital Markets LLC, Regions Securities LLC and Scotia Capital (USA) Inc. are the joint bookrunners.

BOK Financial Securities, Comerica Securities Inc. and Raymond James & Associates are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at par plus 50% of the coupon. They also feature a three-year 35% equity clawback at par plus the coupon and a 101% poison put.

The Houston-based midstream energy master limited partnership plans to use the proceeds to refinance its 6¾% notes 2021 and certain drawings under its revolving credit facility.

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