By Paul A. Harris
Portland, Ore., Dec. 14 – American Midstream Partners LP and American Midstream Finance Corp. (Caa1/B+) priced an upsized $125 million add-on to their 8½% senior notes due Dec. 15, 2021 at 102.375 to yield 7.596% on Thursday, according to market sources.
The tap size was increased from $100 million.
The reoffer price came in the middle of the 102.25 to 102.5 price talk. Initial talk was 102.5.
Active bookrunner Wells Fargo Securities LLC was the left lead.
BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the passive bookrunners.
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.
| Issuers: | American Midstream Partners LP and American Midstream Finance Corp.
|
| Amount: | $125 million, increased from $100 million
|
| Maturity: | Dec. 15, 2021
|
| Security description: | Add-on to 8½% senior notes due Dec. 15, 2021
|
| Lead left/active bookrunner: | Wells Fargo Securities LLC
|
| Passive bookrunners: | BofA Merrill Lynch, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC
|
| Co-managers: | Citigroup Global Markets Inc., Natixis, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 8½%
|
| Price: | 102.375
|
| Yield: | 7.596%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2018, then callable at 104.25
|
| Trade date: | Dec. 14
|
| Settlement date: | Dec. 19
|
| Issuer ratings: | Moody's: Caa1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 102.25 to 102.5
|
| Marketing: | Quick to market
|
| Original issue: | $300 million priced at par on Dec. 13, 2016
|
| Fungibility: | Rule 144A add-on notes will become immediately fungible with original notes; Regulation S add-on notes will become fungible with the original notes following 40-day cooling period
|
| Total issue size: | $425 million
|
© 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.
