By Cristal Cody
Tupelo, Miss., Jan. 16 – Rockies Express Pipeline LLC (Ba1/BBB-/BBB-) priced $750 million of senior notes in two parts on Thursday, according to a market source.
A $400 million tranche of 3.6% long five-year notes priced at a spread of Treasuries plus 200 basis points, compared to initial talk in the 250 bps area.
The company sold $350 million of 4.8% long 10-year notes at a Treasuries plus 300 bps spread.
Initial price guidance was in the Treasuries plus 325 bps area.
Credit Suisse Securities (USA) LLC, MUFG and Wells Fargo Securities, LLC were the bookrunners.
The company held fixed income investor calls on Tuesday.
Proceeds will be used to repay the company’s outstanding $750 million of senior notes due in April 2020.
Rockies Express Pipeline is a Leawood, Kan.-based natural gas pipeline system owned by Tallgrass Energy Partners LP and Phillips 66.
| Issuer: | Rockies Express Pipeline LLC
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, MUFG and Wells Fargo Securities, LLC
|
| Trade date: | Jan. 16
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.6%
|
| Spread: | Treasuries plus 200 bps
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | May 15, 2030
|
| Coupon: | 4.8%
|
| Spread: | Treasuries plus 300 bps
|
| Price guidance: | Treasuries plus 325 bps area
|
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