Magellan Midstream to use $275 million of IPO to repay term loan

By Ted A. Knutson

Washington, Nov. 10 - Magellan Midstream Holdings LP said it would use $275 million of a newly unveiled initial public offering of common stock to repay a term loan of $275 million in principal amount.

The loan was issued June 30 at Libor plus 210 basis points and matures June 30, 2012.

Magellan Midstream estimates the proceeds of the entire IPO at $599.44 million.

The announcement was made in an S-1 filing with the Securities & Exchange Commission.

Magellan Midstream, based in Tulsa, Okla., owns an 8,500-mile petroleum products pipeline network.

Citigroup and Lehman Brothers are the underwriters.

The two are also the lead banks for the term loan.

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