Published on 5/8/2019 in the Prospect News High Yield Daily.
New Issue: DCP Midstream prices upsized $600 million 10-year bullet at par to yield 5 1/8%
By Paul A. Harris
Portland, Ore., May 8 – DCP Midstream Operating, LP price an upsized $600 million issue of 10-year senior bullet notes (Ba2/BB+/BB+) at par to yield 5 1/8% in a Wednesday drive-by, according to market sources.
The issue size was increased from $500 million.
The yield printed 12.5 basis points tighter than the 5¼% to 5 3/8% price talk. Initial guidance was in the 5 3/8% area.
Citigroup Global Markets Inc., MUFG, TD Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners for the public offering.
The Denver-based midstream services master limited partnership plans to use the proceeds for general partnership purposes, including debt repayment under DCP Operating’s revolving credit facility, and for funding capital expenditures.
| Issuer: | DCP Midstream Operating, LP
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | May 15, 2029
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., MUFG, TD Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Co-managers: | PNC Capital Markets LLC, SMBC Nikko Securities America Inc., U.S. Bancorp Investments Inc. and BB&T Capital Markets
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 265 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2029, then callable at par, otherwise non-callable
|
| Trade date: | May 8
|
| Settlement date: | May 10
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 5¼% to 5 3/8%
|
| Marketing: | Quick to market
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