Published on 10/11/2016 in the Prospect News Investment Grade Daily.
New Issue: Phillips 66 Partners prices $1.13 billion of senior notes in two parts
By Cristal Cody
Eureka Springs, Ark., Oct. 11 – Phillips 66 Partners LP sold $1,125,000,000 of senior notes (Baa3/BBB) in two parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 3.55% 10-year notes at 99.901 to yield 3.562%, or 180 basis points over Treasuries.
Phillips 66 sold $625 million of 4.9% 30-year notes at 99.303 to yield 4.945%. The bonds priced with a 245 bps spread over Treasuries.
The bookrunners were J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets, Inc., BofA Merrill Lynch, MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Barclays and RBC Capital markets, LLC.
The Houston-based oil, petroleum and natural gas company intends to use the proceeds to fund an acquisition of pipeline and terminal assets supporting four Phillips 66 refineries and for general partnership purposes.
| Issuer: | Phillips 66 Partners LP
|
| Amount: | $1,125,000,000
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., DNB Markets, Inc., BofA Merrill Lynch, MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, Barclays, RBC Capital markets, LLC
|
| Co-managers: | 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: | Oct. 11
|
| Settlement date: | Oct. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 1, 2026
|
| Coupon: | 3.55%
|
| Price: | 99.901
|
| Yield: | 3.562%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call before July 1, 2026 at Treasuries plus 30 bps; on or after July 1, 2026 at par
|
|
|
| 30-year notes
|
| Amount: | $625 million
|
| Maturity: | Oct. 1, 2046
|
| Coupon: | 4.9%
|
| Price: | 99.303
|
| Yield: | 4.945%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call before April 1, 2046 at Treasuries plus 40 bps; on or after April 1, 2046 at par
|
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