Published on 9/27/2012 in the Prospect News High Yield Daily.
New Issue: Regency Energy upsizes to $700 million, prices 10.5-year notes at par to yield 5½%
By Paul A. Harris
Portland, Ore., Sept. 27 - Regency Energy Partners priced an upsized $700 million issue of senior notes due April 15, 2023 (B1/BB/) at par to yield 5½% on Thursday, according to a syndicate source.
The yield printed at the tight end of the 5½% to 5¾% yield talk.
Citigroup Global Markets Inc. and RBS Securities Inc. were the joint physical bookrunners for the quick-to-market issue, which was upsized from $500 million.
The joint bookrunners were Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey and Wells Fargo Securities LLC.
The Dallas-based midstream energy partnership plans to use the proceeds to repay revolver debt.
| Issuer: | Regency Energy Partners LP and Regency Energy Partners Finance Corp.
|
| Amount: | $700 million, increased from $500 million
|
| Maturity: | April 15, 2023
|
| Securities: | Senior notes
|
| Physical bookrunners: | Citigroup Global Markets Inc., RBS Securities Inc.
|
| Joint bookrunners: | Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Wells Fargo Securities LLC
|
| Co-managers: | Comerica, Natixis
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 386 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2017, then callable at 102.75, 101.917, 101.833, par on and after Oct. 15, 2020
|
| Equity clawback: | 35% at 105.5 until Oct. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 27
|
| Settlement date: | Oct. 2
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5½% to 5¾%
|
| Marketing: | Quick to market
|
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