Published on 12/6/2012 in the Prospect News High Yield Daily.
New Issue: Atlas Pipeline prices $175 million tap of 6 5/8% notes due 2020 at 103
By Paul A. Harris
Portland, Ore., Dec. 6 - Atlas Pipeline Escrow, LLC priced a $175 million add-on to its 6 5/8% senior notes due Oct. 1, 2020 (B2/B+/) at 103 to yield 6.003% on Thursday, according to a syndicate source.
The reoffer price came on the rich end of the 102.75 to 103 price talk.
Wells Fargo Securities LLC was the left bookrunner for the quick-to-market deal.
Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the joint bookruners.
The Moon Township, Pa.-based midstream energy services provider plans to use the proceeds to fund an acquisition, as well as for ongoing working capital requirements and other general partnership purposes.
| Issuer: | Atlas Pipeline Escrow, LLC
|
| Face amount: | $175 million
|
| Proceeds: | $180.25 million
|
| Maturity: | Oct. 1, 2020
|
| Security description: | Add-on to 6 5/8% senior notes due Oct. 1, 2020
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6 5/8%
|
| Price: | 103
|
| Yield: | 6.003%
|
| Spread: | 525 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2016, then callable at 103.313, 101.656, par on and after Oct. 1, 2018
|
| Equity clawback: | 35% at 106.625 until Oct. 1, 2015
|
| Trade date: | Dec. 6
|
| Settlement date: | Dec. 20 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 102.75 to 103
|
| Marketing: | Quick to market
|
| Original issue: | $325 million priced at par on Sept. 25, 2012
|
| Total issue size: | $500 million
|
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