By Andrea Heisinger
New York, May 21 - Panhandle Eastern Pipe Line Co., LP sold an upsized $150 million 8.125% 10-year senior notes early Thursday at par to yield 8.125%, according to an FWP filing with the Securities and Exchange Commission.
The size was increased from $100 million, a source said.
The notes (Baa3/BBB-/BBB) priced with a yield equivalent at the time of pricing to Treasuries plus 486.2 basis points, with a make-whole call at Treasuries plus 50 bps.
Bookrunners were Wachovia Capital Markets LLC and RBC Capital Markets Corp.
Proceeds will be used initially to loan to parent company Southern Union, which will use them to repay a portion of debt under a revolving credit agreement. After repayment to Panhandle, proceeds will be used to repay $60.6 million of 6.5% senior notes due July 15, 2009, to fund capital expenditures and for general corporate purposes.
The natural gas pipeline is based in Houston.
| Issuer: | Panhandle Eastern Pipe Line Co., LP
|
| Issue: | Senior unsecured notes
|
| Amount: | $150 million, increased from $100 million
|
| Maturity: | June 1, 2019
|
| Bookrunners: | Wachovia Capital Markets LLC, RBC Capital Markets Corp.
|
| Coupon: | 8.125%
|
| Price: | Par
|
| Yield: | 8.125%
|
| Spread: | Treasuries plus 486.2 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | May 21
|
| Settlement date: | June 2
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB
|
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