Published on 5/11/2016 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Boardwalk Pipelines sells $550 million 5.95% 10-year notes at 437.5 bps spread
By Cristal Cody
Eureka Springs, Ark., May 11 – Boardwalk Pipelines, LP sold $550 million of 5.95% 10-year senior notes on Wednesday at 98.86 to yield 6.103%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of 437.5 basis points over Treasuries.
Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the lead managers.
The bonds are fully and unconditionally guaranteed by Boardwalk Pipeline Partners, LP.
Proceeds will be used for general partnership purposes, which may include growth capital expenditures, repayment of future maturities of long-term debt and additions to working capital. Pending such use, the company intends to temporarily use the proceeds to reduce borrowings under its revolving credit facility.
Boardwalk Pipelines is a subsidiary of Houston-based Boardwalk Pipeline Partners, LP.
| Issuer: | Boardwalk Pipelines, LP
|
| Guarantor: | Boardwalk Pipeline Partners, LP
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| Amount: | $550 million
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| Maturity: | June 1, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., MUFG, Mizuho Securities USA Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC
|
| Co-managers: | BofA Merrill Lynch, Regions Securities LLC, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., BB&T Capital Markets, Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Coupon: | 5.95%
|
| Price: | 98.86
|
| Yield: | 6.103%
|
| Spread: | Treasuries plus 437.5 bps
|
| Call feature: | Before March 1, 2026 at greater of par and Treasuries plus 50 bps; after March 1, 2026 at par
|
| Pricing date: | May 11
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| Settlement date: | May 16
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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