By Aleesia Forni
Virginia Beach, Va., April 23 - Hiland Partners LP and Hiland Partners Finance Corp. came to market on Tuesday to sell a $150 million tap of their existing 7¼% senior notes due Oct. 1, 2020 (B3/B-/) at 109 to yield 5.31%, according to a market source.
The notes priced at the tight end of talk, which was set at 108.5 to 109.
BofA Merrill Lynch, Wells Fargo Securities LLC and RBS Securities Inc. are the joint bookrunners.
Proceeds will be used to reduce borrowings under the company's revolving credit facility.
The company priced the original $400 million issue at par on Sept. 11, 2012.
Hiland Partners is an Enid, Okla.-based private energy partnership focused on providing midstream services to oil and gas producers in the Williston Basin, Bakken Shale and Mid-Continent regions in the United States.
| Issuers: | Hiland Partners LP and Hiland Partners Finance Corp
|
| Amount: | $150 million add-on
|
| Maturity: | Oct. 1, 2020
|
| Securities: | Senior notes
|
| Joint bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC, RBS Securities Inc.
|
| Senior co-managers: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc.
|
| Co-managers: | BOSC, Comerica
|
| Coupon: | 7¼%
|
| Price: | 109
|
| Yield to worst: | 5.31%
|
| Call features: | Non-callable until Oct. 1, 2016 (make-whole call at Treasuries plus 50 bps)
|
| Equity clawback: | 35% at 107.25 until Oct. 1, 2015
|
| Trade date: | April 23
|
| Settlement date: | April 26
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A, Regulation S
|
| Price talk: | 108.5 to 109
|
| Total issue size: | $550 million, including $400 million priced Sept. 11, 2012 at par
|
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