New Issue: Magellan Midstream prices $500 million 4.85% 30-year notes at 185 bps over Treasuries

By Cristal Cody

Tupelo, Miss., Jan. 11 – Magellan Midstream Partners, LP priced $500 million of 4.85% 30-year senior notes at a spread of 185 basis points over Treasuries on Friday, according to a market source, news release and an FWP filing with the Securities and Exchange Commission.

Initial price talk was in the Treasuries plus 190 bps to 195 bps area.

The notes (Baa1/BBB+) were sold at 99.371 to yield 4.89%.

J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to redeem the company’s $550 million of 6.55% senior notes due 2019 and for general partnership purposes.

The energy transportation, storage and distribution company is based in Tulsa, Okla.

Issuer:	Magellan Midstream Partners, LP
Amount:	$500 million
Description:	Senior notes
Maturity:	Feb. 1, 2049
Bookrunners:	J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets LLC, SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
Co-managers:	Barclays, Citigroup Global Markets Inc., PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC
Coupon:	4.85%
Price:	99.371
Yield:	4.89%
Spread:	Treasuries plus 185 bps
Call feature:	Make-whole call before Aug. 1, 2048 at greater of par and Treasuries plus 30 bps; thereafter at par
Trade date:	Jan. 11
Settlement date:	Jan. 18
Ratings:	Moody’s: Baa1
	S&P: BBB+
Distribution:	SEC registered
Price guidance:	Treasuries plus 190 bps to 195 bps area

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