By Paul A. Harris
St. Louis, April 24 - Inergy LP and Inergy Finance Corp. priced an upsized $200 million add-on to their 8¼% senior notes due March 1, 2016 (B1/B+) at 102 on Thursday, according to an informed source.
The deal, which was upsized from $150 million, priced on top of the price talk.
The informed source said that the deal went very well and added that the order book was oversubscribed.
Wachovia Securities, Lehman Brothers and J.P. Morgan Securities Inc. are leading the Rule 144A with registration rights add-on.
Proceeds will be used to repay the company's revolving acquisition credit facility.
The original $200 million issue priced at par on Jan. 11, 2006.
Inergy is a Kansas City, Mo., owner and operator of a retail and wholesale propane marketing and distribution business.
| Issuers: | Inergy LP and Inergy Finance Corp.
|
| Face amount: | $200 million, increased from $150 million
|
| Proceeds: | $204 million
|
| Maturity: | March 1, 2016
|
| Security description: | Add-on to the 8¼% senior notes
|
| Bookrunners: | Wachovia Securities, Lehman Brothers, J.P. Morgan Securities Inc.
|
| Coupon: | 8¼%
|
| Price: | 102
|
| Yield: | 7.813%
|
| Spread: | 457 bps
|
| Call features: | Callable after March 1, 2011 at 104.125, 102.750, 101.375 par on and after March 1, 2014
|
| Equity clawback: | Until March 1, 2009 for up to 35% at 108.25
|
| Trade date: | April 24
|
| Settlement date: | April 29, with accrued interest
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 102
|
| Original issue: | $200 million priced at par on Jan. 11, 2006
|
| Total issue size: | $400 million
|
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