New Issue: Regency Energy downsized $550 million seven-year notes yield 8 3/8%

By Paul A. Harris

St. Louis, Dec. 7 - Regency Energy Partners LP in conjunction with Regency Energy Finance Corp. priced a downsized $550 million issue of seven-year senior unsecured notes (B2/B) at par to yield 8 3/8% on Thursday, according to an informed source.

The yield came at the wide end of the 8¼% to 8 3/8% price talk.

UBS Investment Bank, Lehman Brothers and Wachovia Securities were joint bookrunners for the Rule 144A with registration rights and Regulation S issue, which was downsized from $650 million. Citigroup and JP Morgan were co-managers.

Proceeds will be used to refinance debt.

The issuer is a Dallas-based midstream energy partnership.

Issuer:	Regency Energy Partners LP/Regency Energy Finance Corp.
Amount:	$550 million (decreased from $650 million)
Maturity:	Dec. 15, 2013
Security description:	Senior unsecured notes
Bookrunners:	UBS Investment Bank, Lehman Brothers, Wachovia Securities
Co-managers:	Citigroup, JP Morgan
Coupon:	8 3/8%
Price:	Par
Yield:	8 3/8%
Spread:	393 bps
Call features:	Callable on Dec. 15, 2010 at 104.188, 102.094, par on and after Dec. 15, 2012
Equity clawback:	Until Dec. 15, 2009 for 35% at 108.375
Trade date:	Dec. 7
Settlement date:	Dec. 12
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	8¼% to 8 3/8%

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