Published on 2/26/2018 in the Prospect News Investment Grade Daily.
New Issue: Phillips 66 Partners prices $1.5 billion of senior notes in three tranches
By Cristal Cody
Tupelo, Miss., Feb. 26 – Phillips 66 priced a $1.5 billion three-part offering of guaranteed senior notes (A3/BBB+/) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of three-year floating-rate notes at par to yield Libor plus 60 basis points.
Phillips 66 priced $800 million of 3.9% 10-year notes at 99.90 to yield 3.912%, or a spread of Treasuries plus 105 bps.
In the final tranche, the company priced a $200 million add-on to its 4.875% bonds due Nov. 15, 2044 at 104.688 to yield 4.566%, or a spread of Treasuries plus 140 bps.
The company originally sold $1.5 billion of the 4.875% notes on Nov. 12, 2014 at 98.099 to yield 4.998% and a spread of 190 bps over Treasuries. The total outstanding now is $1.7 billion.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities USA Inc., Scotia Capital (USA) Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, MUFG, TD Securities (USA) LLC, BofA Merrill Lynch, Pierce, Barclays, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were 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.
| Issuer: | Phillips 66
|
| Guarantor: | Phillips 66 Co.
|
| Amount: | $1.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Mizuho Securities USA Inc., Scotia Capital (USA) Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, MUFG, TD Securities (USA) LLC, BofA Merrill Lynch, Pierce, Barclays, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Co-managers: | UniCredit Capital Markets LLC, Commerz Markets LLC, HSBC Securities (USA) Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., Williams Capital Group, LP, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Trade date: | Feb. 26
|
| Settlement date: | March 1
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | Feb. 26, 2021
|
| Coupon: | Libor plus 60 bps
|
| Price: | Par
|
| Yield: | Libor plus 60 bps
|
| Call feature: | On or after March 1, 2019 at par
|
|
|
| Ten-year notes
|
| Amount: | $800 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2028
|
| Coupon: | 3.9%
|
| Price: | 99.90
|
| Yield: | 3.912%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Dec. 15, 2027 at Treasuries plus 20 bps; thereafter at par
|
|
|
| Twenty-six-year notes
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| Amount: | $200 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 15, 2044
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| Coupon: | 4.875%
|
| Price: | 104.688
|
| Yield: | 4.566%
|
| Spread: | Treasuries plus 140 bps
|
| Call features: | Make-whole call before May 15, 2044 at Treasuries plus 30 bps; thereafter at par
|
| Total outstanding: | $1.7 billion
|
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