Published on 12/13/2016 in the Prospect News High Yield Daily.
New Issue: American Midstream prices $300 million 8½% five-year notes at par
By Paul A. Harris
Portland, Ore., Dec. 13 – American Midstream Partners, LP and American Midstream Partners Finance Corp. priced a $300 million issue of five-year senior notes (Caa1/B+) at par to yield 8½% on Tuesday, according to a syndicate source.
The yield printed at the wide end of the 8¼% to 8½% yield talk.
Wells Fargo Securities LLC was the left bookrunner. BofA Merrill Lynch, RBC Capital Markets Corp., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Natixis Securities Americas LLC and ABN Amro Securities (USA) LLC were the joint bookrunners.
The Denver-based partnership plans to use the proceeds to pay off JP Energy Partners LP’s senior secured revolving credit facility and to repay a portion of the American Midstream Partners senior secured revolver.
American Midstream Partners owns, operates, develops and acquires natural gas midstream energy assets.
| Issuers: | American Midstream Partners, LP and American Midstream Finance Corp.
|
| Amount: | $300 million
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| Maturity: | Dec. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, RBC Capital Markets, Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Natixis Securities Americas LLC, ABN Amro Securities (USA) LLC
|
| Senior co-managers: | Capital One Securities Inc., Deutsche Bank Securities Inc., BNP Paribas Securities Corp., BMO Capital Markets Corp., Santander Investment Securities Inc.
|
| Co-manager: | BBVA Securities Inc.
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 660 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2018, then callable at 104.25
|
| Equity clawback: | 35% at 108.5 until Dec. 15, 2018
|
| Trade date: | Dec. 13
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| Settlement date: | Dec. 28
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| Ratings: | Moody's: Caa1
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| S&P: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Roadshow
|
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