Published on 4/30/2019 in the Prospect News Investment Grade Daily.
New Issue: Boardwalk Pipelines sells $500 million 4.8% 10-year notes at 230 bps spread
By Cristal Cody
Tupelo, Miss., April 30 – Boardwalk Pipelines, LP sold $500 million of 4.8% 10-year senior notes (Baa3/BBB-/BBB-) at a spread of 230 basis points over Treasuries on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.913 to yield 4.811%.
Barclays, J.P. Morgan Securities LLC, MUFG, BB&T Capital Markets, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
The notes are fully and unconditionally guaranteed by parent company Boardwalk Pipeline Partners, LP.
Proceeds will be used to retire all or some of the company’s $350 million of 5.75% notes due 2019 at or near maturity and for general partnership purposes.
Boardwalk Pipelines is a Houston-based owner and operator of natural gas pipelines and storage facilities.
| Issuer: | Boardwalk Pipelines, LP
|
| Guarantor: | Boardwalk Pipeline Partners, LP
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | May 3, 2029
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, MUFG, BB&T Capital Markets, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., BofA Merrill Lynch, TD Securities (USA) LLC, Regions Securities LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 4.8%
|
| Price: | 99.913
|
| Yield: | 4.811%
|
| Spread: | Treasuries plus 230 bps
|
| Call features: | Make-whole call before Feb. 3, 2029 at price equal to greater of par and Treasuries plus 35 bps; thereafter at par
|
| Trade date: | April 30
|
| Settlement date: | May 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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