By Devika Patel
Knoxville, Tenn., Oct. 10 – Phillips 66 Partners LP priced $650 million of senior notes (Baa3/BBB) in two fixed-rate tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $500 million of 3.75% notes due March 1, 2028 at a spread of Treasuries plus 145 basis points. These notes priced at 99.62 to yield 3.795%.
The company also priced a $150 million add-on to the company’s 4.68% bonds due Feb. 15, 2045 on Tuesday at a spread of Treasuries plus 180 bps. These notes priced at 100.024 to yield 4.678%.
The company originally 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 bps. The total outstanding now is $650 million.
Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Mizuho Securities USA Inc. 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.
| Issuer: | Phillips 66 Partners LP
|
| Amount: | $650 million
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., MUFG, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Mizuho Securities USA Inc.
|
| Trade date: | Oct. 10
|
| Settlement date: | Oct. 13
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2028
|
| Amount: | $500 million
|
| Maturity: | March 1, 2028
|
| Coupon: | 3.75%
|
| Price: | 99.62
|
| Yield: | 3.795%
|
| Spread: | Treasuries plus 145 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until Dec. 1, 2027, then a par call
|
|
|
| Add-on to notes due 2045
|
| Amount: | $150 million reopening
|
| Maturity: | Feb. 15, 2045
|
| Coupon: | 4.68%
|
| Price: | 100.024
|
| Yield: | 4.678%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call until Aug. 15, 2044 at Treasuries plus 30 bps, and then a par call
|
| Total outstanding: | $650 million, including $300 million priced on Feb. 18, 2015 to yield 197 bps over Treasuries
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
