Published on 3/4/2014 in the Prospect News High Yield Daily.
New Issue: Access Midstream sells upsized $750 million 10-year notes at par to yield 4 7/8%
By Paul A. Harris
Portland, Ore., March 4 - Access Midstream Partners, LP and ACMP Finance Corp. priced an upsized $750 million issue of 10-year senior notes (Ba2/BB/) at par to yield 4 7/8% on Tuesday, according to a syndicate source.
The deal was upsized from $600 million.
The yield printed on top of yield talk.
Wells Fargo Securities LLC was the left bookrunner for the public offering. Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities and RBC Capital Markets Corp. were the joint bookrunners.
The Delaware limited partnership plans to use the proceeds, including the additional $150 million resulting from the upsizing of the deal, repay its revolver, including amounts incurred to fund the purchase of MidCon Compression LLC, and certain expenses relating to that acquisition, and for general partnership purposes, including funding working capital, the partnership's capital expenditure program and acquisitions.
Access Midstream owns, operates, develops and acquires natural gas, natural gas liquids, and oil gathering systems and other midstream energy assets.
| Issuers: | Access Midstream Partners, LP and ACMP Finance Corp.
|
| Amount: | $750 million, increased from $600 million
|
| Maturity: | March 15, 2024
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| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA), Inc., RBC Capital Markets LLC
|
| Senior co-managers: | Barclays, BBVA Securities Inc., Credit Agricole Securities (USA) Inc., DNB Markets Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments Inc.
|
| Co-managers: | BofA Merrill Lynch, Capital One Securities Inc., Comerica Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SMBC Nikko Capital Markets Ltd., TD Securities (USA) LLC, UBS Securities LLC
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 218 bps
|
| First call: | March 15, 2019 at 102.438
|
| Equity clawback: | 35% at 104.875 until March 15, 2017
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| Change-of-control put: | 101%
|
| Trade date: | March 4
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| Settlement date: | March 7
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| Ratings: | Moody's: Ba2
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| Standard & Poor's: BB
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| Distribution: | SEC registered
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| Price talk: | 4 7/8% area
|
| Marketing: | Quick to market
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