DCP Midstream to price $400 million seven-year bullet on Wednesday; initial talk 6% area

By Paul A. Harris

Portland, Ore., June 17 – DCP Midstream Operating, LP is driving by with a $400 million offering of seven-year senior notes (existing unsecured ratings Ba2/BB+/BB+) on Wednesday, according to market sources.

Initial talk has the public deal coming to yield in the 6% area.

BofA Securities Inc. is the left bookrunner. Barclays, Wells Fargo Securities LLC, PNC Capital Markets LLC, SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners. Regions Securities LLC is the co-manager.

The notes feature a make-whole call at Treasuries plus 50 basis points until three months prior to maturity, then become callable at par. They are otherwise non-callable.

The Denver-based midstream petroleum services provider plans to use the proceeds for general corporate purposes, including the repayment of debt under DCP's revolving credit facility, also to fund capital expenditures.

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