By Paul A. Harris
St. Louis, Feb. 15 - Enterprise Products Operating LP completed a $500 million split-rated two-part senior notes transaction (Baa3/BB+) on Tuesday, according to a syndicate source.
The company sold $250 million of 5% 10-year notes at 99.379 to yield 5.08%, a spread to Treasuries of 98 basis points. That was tight to the Treasuries plus 98 to 100 basis points price talk.
Enterprise Products also sold $250 million of 5¾% 30-year notes at 98.691 to yield 5.843%, a 136 basis points spread to Treasuries. Again the notes priced tight to the Treasuries plus 136 to 138 basis points price talk.
Citigroup, JP Morgan and Merrill Lynch & Co. ran the books. The co-managers were Barclays Capital, Scotia Capital, SunTrust Robinson Humphrey, Wachovia Securities and UBS Investment Bank.
The syndicate source said that the issue received attention from high-yield accounts.
Proceeds will be used to refinance the company's 8¼% notes due March 15, 2005.
The issuer is a Houston-based natural gas and natural gas liquids processing, transportation and storage services provider.
| Issuer: | Enterprise Products Operating LP
|
| Amount: | $500 million
|
| Security description: | Senior notes
|
| Bookrunners: | Citigroup, JP Morgan, Merrill Lynch & Co.
|
| Co-managers: | Barclays Capital, Scotia Capital, SunTrust Robinson Humphrey, Wachovia Securities, UBS Investment Bank
|
| Trade date: | Feb. 15
|
| Settlement date: | March 2
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BB+
|
|
|
| 10-year tranche
|
| Amount: | $250 million
|
| Maturity: | March 1, 2015
|
| Coupon: | 5%
|
| Price: | 99.379
|
| Yield: | 5.08%
|
| Spread: | 98 basis points
|
| Call protection: | Make-whole call at Treasuries plus 15 basis points
|
| Price talk: | 98-100 basis points
|
|
|
| 30-year tranche
|
| Amount: | $250 million
|
| Maturity: | March 1, 2035
|
| Coupon: | 5¾%
|
| Price: | 98.691
|
| Yield: | 5.843%
|
| Spread: | 136 basis points
|
| Call protection: | Make-whole call at Treasuries plus 20 basis points
|
| Price talk: | 136-138 basis points
|
|
|
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