DCP Midstream driving by with $400 million 10.25-year bullet, price talk 3¼% to 3½%

By Paul A. Harris

Portland, Ore., Nov. 4 – DCP Midstream Operating, LP plans to price a $400 million public offering of senior notes due Feb. 15, 2032 (existing ratings Ba1/BB+/BB+) in a Thursday drive-by, according to an informed source.

Price talk is 3¼% to 3½%, low to initial guidance of 3½% to 3¾%.

Books close at 1:30 p.m. ET Thursday, and the deal is set to price thereafter.

Active bookrunner J.P. Morgan Securities LLC will bill and deliver. Mizuho Securities USA LLC and RBC Capital Markets, LLC are also active bookrunners.

Barclays, Citigroup Global Markets Inc., MUFG Securities Americas Inc. and TD Securities (USA) LLC are the joint bookrunners.

PNC Capital Markets LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. are the co-managers.

The notes, which have a maturity of approximately 10.25 years, are protected by a make-whole call until six months prior to their maturity, whereupon they become callable at par. They are otherwise non-callable.

The Denver-based midstream petroleum services provider plans to use the proceeds to repay its revolver and for general corporate purposes.

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