Published on 7/13/2016 in the Prospect News High Yield Daily.
New Issue: Holly Energy prices upsized $400 million 6% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 13 – Holly Energy Partners, LP, along with co-issuer Holly Energy Finance Corp., priced an upsized $400 million issue of eight-year senior notes (B1/BB) at par to yield 6% on Wednesday, according to a market source.
The deal was upsized from $350 million after having earlier been upsized from $300 million.
The yield printed at the tight end of the 6% to 6¼% yield talk.
Along with the upsizing, timing was moved ahead; a previously announced timeline had the deal in the market until Thursday.
Citigroup Global Markets Inc. was the left bookrunner. BofA Merrill Lynch, BBVA, MUFG, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Dallas-based petroleum pipeline operator plans to use the proceeds to repay debt under its revolver.
| Issuers: | Holly Energy Partners LP and Holly Energy Finance Corp.
|
| Amount: | $400 million, increased from $350 million after having earlier been upsized from $300 million
|
| Maturity: | Aug. 1, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, BBVA, MUFG, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC
|
| Senior co-managers: | Goldman Sachs & Co., PNC Capital Markets, Scotia Capital, SunTrust Robinson Humphrey Inc., TD Securities
|
| Co-managers: | BNP Paribas Securities Corp., Capital One, Citizens, Comerica, Fifth Third Securities, SMBC Nikko
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 469 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2019, then callable at 104.5
|
| Equity clawback: | 35% at 106 until Aug. 1, 2019
|
| Change-of-control put: | 101%
|
| Trade date: | July 13
|
| Settlement date: | July 19
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6% to 6¼%
|
| Marketing: | Roadshow
|
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