By Paul A. Harris
Portland, Ore., Feb. 11 – Buckeye Partners LP priced $1 billion of senior notes (B1/BB/BB) in two bullet tranches on Tuesday, according to market sources.
The deal included $500 million of five-year notes that priced at par to yield 4 1/8%. The yield printed tight to price talk in the 4¼% area. Initial guidance was in the low-to-mid 4% area.
Buckeye Partners also priced $500 million of eight-year notes at par to yield 4½%. The yield printed at the tight end of the 4½% to 4¾% yield talk and tight to initial guidance in the mid-to-high 4% area.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were Goldman Sachs & Co. LLC, BofA Securities Inc., CIBC World Markets Corp. and MUFG.
The Houston-based midstream energy services company plans to use the proceeds to refinance its existing 4 7/8% senior notes due 2021, as well as to pay debt under its revolver and for general corporate purposes.
| Issuer: | Buckeye Partners LP
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., CIBC World Markets Corp. and MUFG
|
| Co-managers: | NAB, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC
|
| Call protection: | Non-callable
|
| Trade date: | Feb. 11
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 270 bps
|
| Price talk: | 4¼% area
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2028
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 295.5 bps
|
| Price talk: | 4½% to 4¾%
|
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