Published on 11/12/2021 in the Prospect News Investment Grade Daily.
New Issue: Phillips 66 details $1 billion of 3.3% senior notes due 2052
By Cristal Cody
Chicago, Nov. 12 – Phillips 66 detailed its sale of $1 billion of 3.3% senior notes due March 15, 2052 (A3/BBB+) on Wednesday, according to a market source and multiple filings with the Securities and Exchange Commission.
The notes priced at 99.363 to yield 3.339%.
Pricing on the notes was with a spread of Treasuries plus 143 basis points, tighter than initial talk in the 165 bps area.
The notes will be guaranteed by Phillips 66 Co.
If the company decides to redeem the notes early, there will be a make-whole premium at Treasuries plus 25 bps until Sept. 15, 2051 when the notes can be redeemed at par.
TD Securities (USA) LLC, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc., and SMBC Nikko Securities America, Inc. are the lead bookrunners.
Mizuho Securities USA LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC were listed as joint bookrunners.
Proceeds will be used to redeem the $1 billion of 4.3% senior notes due 2022.
Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
| Issuer: | Phillips 66
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| Guarantor: | Phillips 66 Co.
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| Issue: | Senior notes
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| Amount: | $1 billion
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| Maturity: | March 15, 2052
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| Bookrunners: | TD Securities (USA) LLC, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Mizuho Securities USA LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Truist Securities, Inc., HSBC Securities (USA) Inc., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Siebert Williams Shank & Co., LLC, PNC Capital Markets LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Bracewell LLP
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| Coupon: | 3.3%
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| Price: | 99.263
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| Yield: | 3.339%
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| Spread: | Treasuries plus 143 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps until Sept. 15, 2051, then par call
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| Trade date: | Nov. 10
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| Settlement date: | Nov. 15
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Price talk: | Treasuries plus 165 bps area
|
| Cusip: | 718546BA1
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