By Andrea Heisinger
New York, Nov. 20 - DCP Midstream Operating, LP gave the terms of its $500 million of 2.5% five-year guaranteed senior notes priced on Monday in an FWP filing with the Securities and Exchange Commission. The notes (Baa3/BBB-/BBB-) were priced at 99.379 to yield 2.633% with a spread of Treasuries plus 200 basis points. The spread was in line with guidance.
There is a make-whole call at Treasuries plus 30 bps until Nov. 1, 2017 with a par call after that date.
J.P. Morgan Securities LLC, RBS Securities Inc. and SunTrust Robinson Humphrey Inc. were the active bookrunners. Passive bookrunners were Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC and U.S. Bancorp Investments Inc.
Co-managers were Credit Suisse Securities (USA) LLC and Mitsubishi UFJ Securities (USA) Inc.
Proceeds will be used to repay borrowings under a $140 million term loan and a $343.5 million term loan and for general corporate purposes.
The notes are guaranteed by DCP Midstream Partners, LP.
DCP last tapped the bond market with a $350 million sale of 10-year notes on March 8, 2012.
The unit of DCP Midstream LLC is a Denver-based joint venture between Spectra Energy and ConocoPhillips.
| Issuer: | DCP Midstream Operating, LP
|
| Guarantor: | DCP Midstream Partners, LP
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 1, 2017
|
| Bookrunners: | J.P. Morgan Securities LLC, RBS Securities Inc., SunTrust Robinson Humphrey Inc. (active), Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Mitsubishi UFJ Securities (USA) Inc.
|
| Coupon: | 2.5%
|
| Price: | 99.379
|
| Yield: | 2.633%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps to Nov. 1, 2017, par call after
|
| Trade date: | Nov. 19
|
| Settlement date: | Nov. 27
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Price talk: | 200 bps area
|
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