By Andrea Heisinger
New York, March 7 - Phillips 66 priced its first bond offering (Baa1/BBB/), totaling $5.8 billion in four parts, on Wednesday, an informed source said.
The size was larger than the $5 billion amount predicted, the source said.
The $800 million of 1.95% three-year notes sold at 99.954 to yield 1.966% with a spread of Treasuries plus 155 basis points. The notes were sold significantly tighter than talk in the 170 bps area.
There is a make-whole call at 20 bps over Treasuries.
A $1.5 billion tranche of 2.95% five-year paper priced at 99.982 to yield 2.953% with a spread of 210 bps over Treasuries. The tranche sold tighter than guidance in the 220 bps area.
The five-year notes have a make-whole call at 35 bps over Treasuries.
The $2 billion tranche of 4.3% 10-year notes was offered at 99.763 to yield 4.329% with a spread of 235 bps over Treasuries. These notes also were priced tighter than guidance in the 250 bps area.
There is a make-whole call at Treasuries plus 35 bps.
Finally, there was $1.5 billion of 5.875% 30-year bonds priced at 99.972 to yield 5.876% with a spread of Treasuries plus 275 bps. The bonds sold tighter than guidance in the 285 bps area.
The bonds carry a make-whole call at 40 bps over Treasuries.
The deal was done under Rule 144A and Regulation S.
Active bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and RBS Securities Inc.
Passive bookrunners were Bank of America Merrill Lynch, DNB NOR Markets Inc., Mitsubishi UFJ Securities (USA) Inc. and RBC Capital Markets LLC.
The refiner is set to be spun off from ConocoPhillips Co. in the second half of 2012, with proceeds from this deal being used to fund a distribution to that parent company.
ConocoPhillips was last in the market with a $3 billion offering in three tranches on May 18, 2009. A 4.6% long five-year note from that deal priced at 250 bps over Treasuries while a 6% long 10-year note sold at 285 bps. A 6.5% 30-year bond from the same deal priced at 287.5 bps.
The refinery is based in Houston.
| Issuer: | Phillips 66
|
| Issue: | Senior notes
|
| Amount: | $5.8 billion, upsized from $5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, RBS Securities Inc. (active); Bank of America Merrill Lynch, DNB NOR Markets Inc., Mitsubishi UFJ Securities (USA) Inc., RBC Capital Markets LLC (passive)
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | March 7
|
| Settlement date: | March 12
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
|
|
| Three-year notes
|
| Amount: | $800 million
|
| Maturity: | March 5, 2015
|
| Coupon: | 1.95%
|
| Price: | 99.954
|
| Yield: | 1.966%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 170 bps area
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 1, 2017
|
| Coupon: | 2.95%
|
| Price: | 99.982
|
| Yield: | 2.953%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 220 bps area
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | April 1, 2022
|
| Coupon: | 4.3%
|
| Price: | 99.763
|
| Yield: | 4.329%
|
| Spread: | Treasuries plus 235 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 250 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | May 1, 2042
|
| Coupon: | 5.875%
|
| Price: | 99.972
|
| Yield: | 5.876%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 285 bps area
|
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