By Rebecca Melvin and Cristal Cody
New York, Feb. 10 – Galaxy Pipeline Assets Bidco Ltd. priced $3.92 billion of senior secured bonds in two tranches (Aa2//AA), according to a market source on Wednesday.
A $1.75 billion tranche of 2.16% bonds due March 2034 (series D) priced at par with a spread of 133.8 basis points over Treasuries. The term was set at the middle of talk for 12.5-year to 13.5-year bonds, with a weighted average life of 6.5 years to 7.5 years. Pricing was tight to initial talk for yield in the area of Treasuries plus 155 bps.
The $2.17 billion of 2.94% bonds due September 2040 (series E) priced at par to yield 178 bps over Treasuries. The bond was talked at a tenor of 19 years to 19.5 years, with a weighted average life of 12.5 years to 13.5 years. It was also talked to yield in the area of Treasuries plus 200 bps.
The Rule 144A and Regulation S deal was marketed by Citigroup, HSBC and Mizuho as joint global coordinators and joint bookrunners together with joint bookrunners FAB, Santander, SMBC Nikko and Societe Generale, and joint lead managers, ADCB, BNP Paribas, Credit Agricole CIB, ENBD, Natixis, MUFG, Samba and Standard Chartered Bank. Co-lead managers were Caixabank and DBS.
The proceeds are expected to be used to refinance existing bank financing, to terminate hedging agreements and for transaction costs.
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 bonds
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| Amount: | $3.92 billion
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| Bookrunners: | Citigroup, HSBC, Mizuho, FAB, Santander, SMBC Nikko and Societe Generale
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| Joint lead managers: | ADCB, BNP Paribas, Credit Agricole CIB, ENBD, Natixis, MUFG, Samba and Standard Chartered Bank
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| Co-lead managers: | Caixabank and DBS
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| Pricing date: | Feb. 9
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| Settlement date: | Feb. 18
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| Expected ratings: | Moody’s: Aa2
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| Fitch: AA
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| Distribution: | Rule 144A and Regulation S
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|
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| Series D bonds
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| Amount: | $1.75 billion
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| Maturity: | March 31, 2034
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| Coupon: | 2.16%
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| Price: | Par
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| Yield: | 2.16%
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| Spread: | 133.8 bps over Treasuries
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| Price talk: | 155 bps over Treasuries area
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|
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| Series E bonds
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| Amount: | $2.17 billion
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| Maturity: | Sept. 30, 2040
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| Coupon: | 2.94%
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| Price: | Par
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| Yield: | 2.94%
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| Spread: | 178 bps over Treasuries
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| Price talk: | 200 bps over Treasuries area
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