By Andrea Heisinger
New York, June 24 - Enogex LLC sold an upsized $200 million 6.875% five-year senior notes Wednesday to yield Treasuries plus 425 basis points, an informed source said.
The size was initially $150 million for the Rule 144A offering.
The notes (Baa3/BBB+/BBB) priced at 99.768 to yield 6.929% with a make-whole call at Treasuries plus 50 bps.
Although the informed source said it was "tough to find buyers" for the deal due to the issuer's non-household name, it ended up about 1.5 times oversubscribed.
Bookrunners were J.P. Morgan Securities Inc., UBS Investment Bank and Wachovia Capital Markets LLC.
Proceeds will be used to buy back senior notes due 2010.
The midstream pipeline subsidiary of OGE Energy Inc. is based in Oklahoma City.
| Issuer: | Enogex LLC
|
| Issue: | Senior notes
|
| Amount: | $200 million, increased from $150 million
|
| Maturity: | July 15, 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., UBS Investment Bank, Wachovia Capital Markets LLC
|
| Coupon: | 6.875%
|
| Price: | 99.768
|
| Yield: | 6.929%
|
| Spread: | Treasuries plus 425 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Distribution: | Rule 144A
|
| Trade date: | June 24
|
| Settlement date: | June 29
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
