By Paul A. Harris
Portland, Ore., July 29 – Compressco Partners, LP and its wholly owned subsidiary Compressco Finance Corp. priced a $350 million issue of 7¼% eight-year senior notes (B2/B/) at 98.508 to yield 7½% on Tuesday, according to a syndicate source.
The yield printed at the wide end of the 7% to 7½% initial guidance, according to a buyside source.
BofA Merrill Lynch was the left bookrunner. Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds, along with $400 million expected to be raised in an equity offering and a draw on the company’s revolver, will be used to fund a portion of the pending acquisition of Compressor Systems, Inc., as well as to repay borrowings, if any, under the existing revolver.
Compressco is a Midland, Texas-based compression-based production enhancement services provider to the oil and gas exploration and production industry.
| Issuers: | Compressco Partners, LP and Compressco Finance Inc.
|
| Amount: | $350 million
|
| Maturity: | Aug. 15, 2022
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBC Capital Markets, Wells Fargo Securities LLC
|
| Co-managers: | Capital One Securities, Raymond James & Associates Inc.
|
| Coupon: | 7¼%
|
| Price: | 98.508
|
| Yield: | 7½%
|
| Spread: | 522 bps
|
| First call: | Aug. 15, 2017 at 105.438
|
| Trade date: | July 29
|
| Settlement date: | Aug. 4
|
| Ratings: | Moody’s: B2
|
| Standard & Poor’s: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Initial guidance: | 7% to 7½%
|
| Marketing: | Roadshow
|
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