Phillips 66 to sell notes, including add-on to 4.875% notes due 2044

By Devika Patel

Knoxville, Tenn., Feb. 26 – Phillips 66 is planning to price a three-part offering of guaranteed senior notes, according to a 424B3 filing with the Securities and Exchange Commission.

The offering includes one tranche of fixed-rate notes, one tranche of floating-rate notes and an add-on to the company’s 4.875% bonds (A3/BBB) due Nov. 15, 2044.

The company sold $1.5 billion of the 4.875% notes on Nov. 12, 2014. The original notes were priced at 98.099 to yield 4.998% with a spread of 190 basis points over Treasuries.

Both of the fixed-rate notes feature a make-whole call, with the 4.875% notes callable at a 30 bps premium to Treasuries until May 15, 2044, and are then callable at par. The floaters are non-callable initially and then callable at par.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities USA Inc. and Scotia Capital (USA) Inc. are the bookrunners.

Proceeds will be used to reduce commercial paper borrowings 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.

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