New Issue: Rockies Express Pipeline prices $525 million six-year notes at par to yield 6%

By Paul A. Harris

Portland, Ore., Jan. 10 - Rockies Express Pipeline LLC priced a $525 million issue of non-callable six-year senior notes (Ba2/BB/) at par to yield 6% on Thursday, according to a syndicate source.

The yield printed at the tight end of the 6% to 6½% yield talk.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC were the joint bookrunners.

The Houston-based natural gas pipeline operator plans to use the proceeds to finance the redemption of the 6¼% notes due 2013 and for general corporate purposes.

Issuer:	Rockies Express Pipeline LLC
Amount:	$525 million
Maturity:	Jan. 15, 2019
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Agricole CIB, ING Financial Markets LLC
Coupon:	6%
Price:	Par
Yield to worst:	6%
Spread:	498 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Investor put:	101%
Trade date:	Jan. 10
Settlement date:	Jan. 17
Ratings:	Moody's: Ba2
	Standard & Poor's: BB
Distribution:	Rule 144A and Regulation S
Price talk:	6% to 6¼%
Marketing:	Roadshow

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