Published on 2/28/2012 in the Prospect News High Yield Daily.
New Issue: Holly Energy prices $300 million eight-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., Feb. 28 - Holly Energy Partners, LP and Holly Energy Finance Corp. priced a $300 million issue of eight-year senior notes (B1/BB-/) at par to yield 6½% on Wednesday, according to a syndicate source.
The yield printed at the tight end of the 6½% to 6¾% yield talk.
Timing on the deal was moved ahead. When the deal was announced, the books were scheduled to stay open until 10 a.m. ET on Wednesday.
Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market deal. UBS Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used to help fund the tender offer for $185 million of senior notes due 2015, to pay down the company's promissory notes and to repay its revolver.
Holly is a Dallas-based provider of petroleum product and crude oil transportation, tankage and terminal services to the petroleum industry.
| Issuer: | Holly Energy Partners LP and Holly Energy Finance Corp.
|
| Amount: | $300 million
|
| Maturity: | March 1, 2020
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | UBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | BBVA Securities, Capital One Southcoast, Comerica Investment, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., Lloyd TSB, Mitsubishi UFJ, Morgan Stanley & Co. LLC, Natixis, PNC Capital Markets LLC, Rabobank, SMBC , SunTrust Robinson Humphrey, TD Securities, US Bancorp
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 457 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 1, 2016, then callable at 103.25, 101.625, par on and after March 1, 2018
|
| Equity clawback: | 35% at 106.5 until March 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 28
|
| Settlement date: | March 12
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| Ratings: | Moody's: B1
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| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Quick to market
|
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