By Aleesia Forni
Virginia Beach, Feb. 18 – Phillips 66 Partners LP priced $1.1 billion of senior notes (/BBB/) in three parts on Wednesday, according to an informed source.
The company priced $300 million of 2.646% notes due 2020 at par, or 112 basis points over Treasuries.
The notes sold at the tight end of talk set in the 115 bps area over Treasuries.
A second tranche was $500 million of 3.605% notes due 2025 with a spread of Treasuries plus 152 bps. Pricing was at 99.967 to yield 3.609%.
The notes priced at the tight end of talk set in the Treasuries plus 155 bps area.
There was also $300 million of 4.68% notes due 2045 priced at 99.953 to yield 4.683%, or 197 bps over Treasuries.
Pricing was at the tight end of talk, which was set in the area of 200 bps over Treasuries.
RBS Securities Inc., Barclays, Goldman Sachs & Co. and RBC Capital Markets LLC were the bookrunners.
The company intends to use net proceeds from this offering to fund a pipeline acquisition transaction and for general partnership purposes, including repayment of certain sponsor loans and other outstanding debt and to fund capital expenditures.
The Houston-based master limited partnership owns, operates, develops and acquires crude oil and refined petroleum product.
| Issuer: | Phillips 66 Partners LP
|
| Issue: | Senior notes
|
| Amount: | $1.1 billion
|
| Bookrunners: | RBS Securities Inc., Barclays, Goldman Sachs & Co., RBC Capital Markets LLC
|
| Trade date: | Feb. 18
|
| Rating: | Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2020
|
| Coupon: | 2.646%
|
| Price: | Par
|
| Yield: | 2.646%
|
| Spread: | 112 bps
|
| Price talk: | 115 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 15, 2025
|
| Coupon: | 3.605%
|
| Price: | 99.967
|
| Yield: | 3.609%
|
| Spread: | 152 bps
|
| Price talk: | 155 bps area
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2045
|
| Coupon: | 4.68%
|
| Price: | 99.953
|
| Yield: | 4.683%
|
| Spread: | 197 bps
|
| Price talk: | 200 bps area
|
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