Published on 5/23/2011 in the Prospect News High Yield Daily.
New Issue: Regency Energy prices $500 million 10-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., May 23 - Regency Energy Partners LP and Regency Energy Finance Corp. priced a $500 million issue of 10-year senior notes (B1/BB-/) at par to yield 6½% on Monday, according to an informed source.
The yield printed at the wide end of price talk, which had been set in the 6 3/8% area.
Morgan Stanley & Co. Inc., RBS Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market deal.
The Dallas-based midstream energy partnership plans to use the proceeds to repay revolver borrowings. As of May 20, there was about $775 million outstanding under the revolver.
| Issuers: | Regency Energy Partners LP and Regency Energy Finance Corp.
|
| Amount: | $500 million
|
| Maturity: | July 15, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. Inc., RBS Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC
|
| Senior co-managers: | Deutsche Bank Securities Inc., SunTrust Robinson Humphrey, Inc.
|
| Junior co-managers: | Comerica Securities, Inc., Natixis Securities North America Inc., Scotia Capital (USA) Inc., US Bancorp Investments, Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 338 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2016, then callable at 103.25, 102.167, 101.083, par on and after July 15, 2019
|
| Equity clawback: | 35% at 106.50 until July 15, 2014
|
| Trade date: | May 23
|
| Settlement date: | May 26
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6 3/8% area
|
| Marketing: | Quick to market
|
© 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.
