Phillips 66 plans notes in two parts, including add-on to 4.68% notes

By Devika Patel

Knoxville, Tenn., Oct. 10 – Phillips 66 Partners LP intends to sell fixed-rate senior notes in two tranches, including an add-on to its 4.68% notes (BBB) due Feb. 15, 2045, according to a 424B2 filing with the Securities and Exchange Commission.

The company sold $300 million of the 4.68% notes in a sale that priced on Feb. 18, 2015 and settled on Feb. 23, 2015. The notes were priced at 99.953 to yield 4.683%, or Treasuries plus 197 basis points.

The new notes have a make-whole call and then a par call. The 4.68% notes have a make-whole call until Aug. 15, 2044 at Treasuries plus 30 bps, and then a par call.

Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are the bookrunners.

Proceeds will be used to repay the remaining debt assumed in connection with the company's Oct. 6 acquisition of a 25% interest in each of Dakota Access, LLC and Energy Transfer Crude Oil Co., LLC and a 100% interest in Merey Sweeny, LP, including all of the remaining outstanding debt under a $450 million term loan negotiated for the acquisition, of which about $175 million remains outstanding, and the $272 million of remaining term promissory notes, also assumed for the acquisition, as well as for general partnership purposes, including future debt repayments.

The oil, petroleum and natural gas company is based in Houston.

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