Published on 9/19/2017 in the Prospect News High Yield Daily.
New Issue: Holly Energy prices $100 million tap of 6% notes due 2024 at 103.25
By Paul A. Harris
Portland, Ore., Sept. 19 – Holly Energy Partners, LP priced a $100 million tack-on to its 6% senior notes due Aug. 1, 2024 (B2/BB) at 103.25 on Tuesday, according to market sources.
The reoffer price came in the middle of the 103 to 103.5 price talk and at the rich end of initial price talk in the 103 area.
Citigroup Global Markets Inc. was the lead bookrunner. BofA Merrill Lynch, BBVA Securities Inc., MUFG, TD Securities 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 revolving credit facility.
| Issuers: | Holly Energy Partners LP and Holly Energy Finance Corp.
|
| Face amount: | $100 million
|
| Proceeds: | $103.25 million
|
| Maturity: | Aug. 1, 2024
|
| Security description: | Tack-on to 6% senior notes due Aug. 1, 2024
|
| Lead bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BofA Merrill Lynch, BBVA Securities Inc., MUFG, TD Securities, Wells Fargo Securities LLC
|
| Senior co-managers: | Scotia Capital, SMBC Nikko, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Fifth Third, PNC Capital Markets LLC
|
| Coupon: | 6%
|
| Price: | 103.25
|
| Yield to worst: | 5.232%
|
| Spread to worst: | 340 bps
|
| Yield to maturity: | 5.425%
|
| Spread to maturity: | 336 bps
|
| First 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
|
| Trade date: | Sept. 19
|
| Settlement date: | Sept. 22
|
| Ratings: | Moody's: B2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 103 to 103.5
|
| Marketing: | Quick to market
|
| Original issue: | $400 million issue priced at par in July 2016
|
| Total issue size: | $500 million
|
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