Published on 3/10/2015 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Boardwalk Pipelines sells $250 million tap of 4.95% notes due 2024 at 285 bps spread
By Aleesia Forni
Virginia Beach, March 10 – Boardwalk Pipelines LP sold an upsized $250 million add-on to its existing 4.95% senior notes due Dec. 15, 2024 on Tuesday at Treasuries plus 285 basis points, according to an informed source and an FWP filed with the Securities and Exchange Commission.
Pricing was at the tight end of talk set in the 290 bps area over Treasuries.
The notes (Baa3/BB+/BBB-) sold at 99.752 to yield 4.981%.
Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG and Wells Fargo Securities, LLC were the bookrunners.
The notes are guaranteed by Boardwalk Pipeline Partners LP.
Proceeds will be used to retire a portion of the outstanding $250 million of subsidiary Texas Gas Transmission LLC’s 4.6% notes due 2015.
The original $350 million issue priced with a spread of Treasuries plus 275 bps on Nov. 19.
The natural gas and liquids pipeline and storage company is based in Houston.
| Issuer: | Boardwalk Pipelines LP
|
| Guarantor: | Boardwalk Pipeline Partners LP
|
| Amount: | $250 million, upsized from $175 million
|
| Description: | Add-on to senior notes
|
| Maturity: | Dec. 15, 2024
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., MUFG, Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, BBVA Securities Inc., Fifth Third Securities, Inc., Goldman Sachs & Co., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, UBS Securities LLC
|
| Coupon: | 4.95%
|
| Price: | 99.752
|
| Yield: | 4.981%
|
| Spread: | 285 bps over Treasuries
|
| Make-whole call: | 45 bps over Treasuries prior to Sept. 15, 2024, then callable at par
|
| Trade date: | March 10
|
| Settlement date: | March 13
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BB+
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | 290 bps area over Treasuries
|
| Total issue size: | $600 million, including $350 million priced Nov. 19, 2014 at 275 bps spread
|
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