Published on 2/4/2014 in the Prospect News High Yield Daily.
New Issue: Regency Energy sells upsized $900 million 5 7/8% eight-year notes to yield 6 1/8%
By Paul A. Harris
Portland, Ore., Feb. 4 - Regency Energy Finance Corp., a wholly owned subsidiary of Regency Energy Partners LP, priced an upsized $900 million issue of non-callable 5 7/8% eight-year senior notes (B1/BB/) at 98.423 to yield 6 1/8% on Tuesday, according to a syndicate source.
The deal was upsized from $600 million.
The yield printed at the tight end of yield talk in the 6¼% area.
BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Natixis Securities North America Inc., RBC Capital Markets, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC, Scotia Capital and UBS Investment Bank are the joint bookrunners.
The Dallas-based oil and gas master limited partnership plans to use the proceeds to repay debt outstanding under its revolver and for general partnership purposes.
| Issuers: | Regency Energy Partners LP and Regency Energy Finance Corp.
|
| Amount: | $900 million, increased from $600 million
|
| Proceeds: | $886 million
|
| Maturity: | March 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Natixis Securities North America Inc., RBC Capital Markets, RBS Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, PNC Capital Markets LLC, Scotia Capital, UBS Investment Bank
|
| Coupon: | 5 7/8%
|
| Price: | 98.423
|
| Yield: | 6 1/8%
|
| Spread: | 378 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Trade date: | Feb. 4
|
| Settlement date: | Feb. 10
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 6¼% area
|
| Marketing: | Quick to market
|
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