By Aleesia Forni
Virginia Beach, Nov. 12 – Phillips 66 priced $2.5 billion of senior notes (A3/BBB/) on Wednesday in 20- and 30-year tranches, according to a market source.
The sale included $1 billion of 4.65% 20-year notes priced at 98.744 to yield 4.748%, or Treasuries plus 165 basis points.
There was also $1.5 billion of 4.875% 30-year bonds priced at 98.099 to yield 4.998%, or Treasuries plus 190 bps.
Both tranches sold around 10 bps tighter than the midpoint of guidance.
MUFG, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBS Securities Inc. were the bookrunners.
Proceeds will be used to repay $800 million of the company’s outstanding 1.95% senior notes due 2015, for capital expenditures and for general corporate purposes.
The notes are guaranteed by Phillips 66 Co.
Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
| Issuer: | Phillips 66
|
| Guarantor: | Phillips 66 Co.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | MUFG, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBS Securities Inc.
|
| Trade date: | Nov. 12
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 20-year bonds
|
| Amount: | $1 billion
|
| Tenor: | 20 years
|
| Coupon: | 4.65%
|
| Price: | 98.744
|
| Yield: | 4.748%
|
| Spread: | Treasuries plus 165 bps
|
| Price talk: | Treasuries plus 175 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Tenor: | 30 years
|
| Coupon: | 4.875%
|
| Price: | 98.099
|
| Yield: | 4.998%
|
| Spread: | Treasuries plus 190 bps
|
| Price talk: | Treasuries plus 200 bps area
|
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