Published on 1/27/2012 in the Prospect News High Yield Daily.
New Issue Genesis Energy sells $100 million tap of 7 7/8% notes due 2018 at 101 to yield 7.682%
By Paul A. Harris
Portland, Ore., Jan. 27 - Genesis Energy, LP and Genesis Energy Finance Corp. priced a $100 million add-on to their 7 7/8% senior notes due Dec. 15, 2018 (B2/B/) at 101 to yield 7.682% on Friday, according to an informed source.
The reoffer price came cheap to the 101.5 area price talk
Deutsche Bank Securities Inc. was the left bookrunner for the quick-to-market add-on. Citigroup Global Markets Inc., RBC Capital Markets, BMO Securities and Bank of America Merrill Lynch were the joint bookrunners.
The Houston energy company plans to use the proceeds to repay bank debt.
The original $250 million issue priced at par in November 2010.
| Issuer: | Genesis Energy, LP, Genesis Energy Finance Corp.
|
| Face amount: | $100 million
|
| Proceeds: | $101 million
|
| Maturity: | Dec. 15, 2018
|
| Security description: | Add-on to 7 7/8% senior notes due Dec. 15, 2018
|
| Left bookrunner: | Deutsche Bank Securities Inc.
|
| Joint bookrunners: | Citigroup Global Markets Inc., RBC Capital Markets, BMO Securities, Bank of America Merrill Lynch
|
| Coupon: | 7 7/8%
|
| Price: | 101
|
| Yield: | 7.682%
|
| Spread: | 636 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2014, then callable at 103.938, 101.969, par on and after Dec. 15, 2016
|
| Equity clawback: | 35% at 107.875 until Dec. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 1 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 101.5 area
|
| Marketing: | Quick to market
|
| Original issue: | $250 million priced at par in November 2010
|
| Total issue size: | $350 million
|
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