By Paul A. Harris
St. Louis, Dec. 17 - Inergy LP, in conjunction with Inergy Finance Corp., priced an upsized $425 million issue of 10-year senior notes (B1/B-) at par to yield 6 7/8% Friday, according to a syndicate source.
Price talk was in the 6¾% area.
Lehman Brothers and JP Morgan ran the books for the Rule 144A/Regulation S issue. Wachovia Securities was the co-manager.
Proceeds will be used to help fund the $475 million acquisition of Star Gas Partners' propane operations.
The issue was upsized from $400 million.
Inergy is a Kansas City, Mo.-based retail and wholesale propane distribution company.
| Issuer: | Inergy LP/ Inergy Finance Corp.
|
| Amount: | $425 million (increased from $400 million)
|
| Maturity: | Dec. 15, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Lehman Brothers, JP Morgan
|
| Co-manager: | Wachovia Securities
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Spread: | 266 basis points
|
| Call features: | Callable on or after Dec. 15, 2009 at 103.438, 102.292, 101.146 and par on and after Dec. 15, 2012
|
| Equity clawback: | Until Dec. 15, 2007 for up to 35% at 106.875
|
| Trade date: | Dec. 17
|
| Settlement date: | Dec. 22
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B-
|
| Price talk: | 6¾% area
|
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