By Rebecca Melvin
New York, Oct. 28 – Galaxy Pipeline Assets Bidco Ltd. priced $4 billion of senior secured notes in three tranches (Aa2//AA) on Tuesday, according to a market source on Wednesday.
A $1.1 billion tranche of 1¾% notes due 2027 (series A) priced at par with a spread of 141.7 basis points over Treasuries. The weighted average life of the bond is 4.05 years. That compared to talk for a weighted average life of four to five years and yield in the area of 1 7/8%.
The $1.55 billion of 2 5/8% notes due 2036 (series B) priced at par for a weighted average life of 11.49 years. That compares to talk for a weighted average life of 11 to 12 years and yield in the 2¾% area.
The $1.35 billion of 3¼% notes due 2040 (series C) priced at par for a yield to maturity of 168.3 bps over Treasuries and a weighted average life of 17.98 years. That compared to talk for a weighted average life of 17 to 18 years, which was talked to yield in the area of 3 3/8%.
The Rule 144A and Regulation S deal was marketed by Citigroup and HSBC as joint global coordinators and joint bookrunners together with joint bookrunners and joint lead managers BNP Paribas, FAB, Mizuho, MUFG, Standard Chartered Bank, ADCB, Credit Agricole CIB, ENBD Capital, Natixis, Samba, Santander, SMBC Nikko, Societe Generale, CaixaBank and DBS.
Listing on the Irish Stock Exchange plc and trading a Euronext Dublin is planned.
The debt, refinancing and acquisitions entity is based in the United Kingdom and is focused on the Middle East.
| Issuer: | Galaxy Pipeline Assets Bidco Ltd.
|
| Description: | Senior secured notes
|
| Total amount: | $4 billion
|
| Bookrunners: | Citigroup and HSBC (joint global coordinators); BNP Paribas, FAB, Mizuho, MUFG, Standard Chartered Bank, ADCB, Credit Agricole CIB, ENBD Capital, Natixis, Samba, Santander, SMBC Nikko, Societe Generale, CaixaBank and DBS
|
| Pricing date: | Oct. 27
|
| Settlement date: | Nov. 5
|
| Expected ratings: | Moody’s: Aa2
|
| Fitch: AA
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2027 notes
|
| Amount: | $1.1 billion
|
| Maturity: | Sept. 30, 2027
|
| Coupon: | 1¾%
|
| Price: | Par
|
| Yield: | 1¾%
|
| Spread: | 141.7 bps over Treasuries
|
| Price talk: | Guided to area of 1 7/8%
|
|
|
| 2036 notes
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| Amount: | $1.55 billion
|
| Maturity: | March 31, 2036
|
| Coupon: | 2 5/8%
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| Price: | Par
|
| Yield: | 2 5/8%
|
| Spread: | 184.9 bps over Treasuries
|
| Price talk: | Guided to area of 2¾%
|
|
|
| 2040 notes
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| Amount: | $1.35 billion
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| Maturity: | Sept. 30, 2040
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| Coupon: | 3¼%
|
| Price: | Par
|
| Yield: | 3¼%
|
| Spread: | 168.3 bps over Treasuries
|
| Price Talk: | 3 3/8% area
|
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