By Andrea Heisinger
Omaha, June 24 - Rockies Express Pipeline LLC priced $1.3 billion senior unsecured notes (Baa3/BBB/BBB) on Tuesday in three tranches, a source close to the issue said.
The $500 million of 6.25% five-year notes priced at 99.948 to yield 6.261%, or Treasuries plus 270 basis points. They have a make-whole call of Treasuries plus 40 bps.
The $550 million of 6.85% 10-year notes priced at 99.858 to yield 6.869%, or Treasuries plus 275 bps. They have a make-whole call of Treasuries plus 40 bps.
The $250 million of 7.5% 30-year notes priced at 99.543 to yield 7.538%, or Treasuries plus 287.5 bps. They have a make-whole call of Treasuries plus 45 bps.
All three tranches came in line with price talk, which was 270 bps to 275 bps for the five-year notes, the 275 bps area for the 10-year notes and the 287.5 bps area for the 30-year notes.
The issue was two times oversubscribed, a source close to the issue said.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Lehman Brothers Inc.
The natural gas pipeline operator is based in Houston.
| Issuer: | Rockies Express Pipeline LLC
|
| Issue: | Senior unsecured notes
|
| Amount: | $1.3 billion
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc.
|
| Trade date: | June 24
|
| Settlement date: | June 27
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | July 15, 2013
|
| Coupon: | 6.25%
|
| Price: | 99.948
|
| Yield: | 6.261%
|
| Spread: | Treasuries plus 270 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 270 bps to 275 bps
|
|
|
| 10-year notes
|
| Amount: | $550 million
|
| Maturity: | July 15, 2018
|
| Coupon: | 6.85%
|
| Price: | 99.858
|
| Yield: | 6.869%
|
| Spread: | Treasuries plus 275 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
| Price talk: | 275 bps area
|
|
|
| 30-year notes
|
| Amount: | $250 million
|
| Maturity: | July 15, 2038
|
| Coupon: | 7.5%
|
| Price: | 99.543
|
| Yield: | 7.538%
|
| Spread: | Treasuries plus 287.5 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
| Price talk: | 287.5 bps area
|
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