American Midstream Partners to price $100 million tap of 8½% notes in Thursday drive-by

By Paul A. Harris

Portland, Ore., Dec. 14 – American Midstream Partners LP and American Midstream Finance Corp. (existing ratings Caa1/B+) plan to price a $100 million add-on to their 8½% senior notes due Dec. 15, 2021 on Thursday, according to market sources.

Initial talk has the tap coming at a 102.5 reoffer price.

The Rule 144A and Regulation S offering is being marketed exclusively by means of an internet roadshow. There will be no investor conference call.

Active bookrunner Wells Fargo Securities LLC is the left lead.

BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the passive bookrunners.

Citigroup Global Markets Inc., Natixis Securities and SunTrust Robinson Humphrey Inc. are the co-managers.

The notes feature a make-whole call at Treasuries plus 50 basis points until Dec. 15, 2018, then become callable at 104.25.

The Denver-based partnership, which owns, operates, develops and acquires natural gas midstream energy assets, plans to use the proceeds to reduce borrowings under its revolving credit facility, which may be re-borrowed from time to time for general partnership purposes.

The original $300 million issue priced at par on Dec. 13, 2016.

The Rule 144A add-on notes will become immediately fungible with original notes. The Regulation S add-on notes will become fungible with the original notes following 40-day cooling period.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.