Published on 6/9/2020 in the Prospect News Investment Grade Daily.
New Issue: Phillips 66 prices $1 billion of notes and add-on notes in two parts
By Devika Patel
Knoxville, Tenn., June 9 – Phillips 66 priced $1 billion of senior notes (A3/BBB+) in two fixed-rate tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company priced a $150 million add-on to the company’s 3.85% bonds due April 9, 2025 at a spread of Treasuries plus 80 basis points. These notes priced at 111.947 to yield 1.25%.
The company originally sold $500 million of the 3.85% notes on April 9.
The company also priced $850 million of 2.15% notes due Dec. 15, 2030 at a spread of Treasuries plus 130 bps. These notes priced at 99.701 to yield 2.182%.
BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc., Commerz Markets LLC, RBC Capital Markets LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes.
The oil, petroleum and natural gas company is based in Houston.
| Issuer: | Phillips 66
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc., Commerz Markets LLC, RBC Capital Markets LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc., Mizuho Securities USA LLC, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Co-managers: | SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Siebert Williams Shank & Co. LLC, U.S. Bancorp Investments Inc. and UniCredit Capital Markets LLC
|
| Trade date: | June 8
|
| Settlement date: | June 10
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Add-on to 2025 notes
|
| Amount: | $150 million reopening
|
| Maturity: | April 9, 2025
|
| Coupon: | 3.85%
|
| Price: | 111.947
|
| Yield: | 1.25%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call until March 9, 2025 at Treasuries plus 50 bps, and then a par call
|
| Total outstanding: | $650 million, including $500 million priced on April 9
|
|
|
| 2030 notes
|
| Amount: | $850 million
|
| Maturity: | Dec. 15, 2030
|
| Coupon: | 2.15%
|
| Price: | 99.701
|
| Yield: | 2.182%
|
| Spread: | Treasuries plus 130 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Sept. 15, 2030, then a par call
|
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