By Paul A. Harris
Portland, Ore., May 7 - Atlas Pipeline Partners, LP and Atlas Pipeline Finance Corp. priced an upsized $400 million issue of 8.5-year senior notes (B2/B+/) at par to yield 4¾% on Tuesday, according to a syndicate source.
The deal was upsized from $325 million.
The yield printed at the tight end of the 4¾% to 5% yield talk.
Citigroup Global Market Inc. was the left bookrunner for the quick-to-market deal.
Wells Fargo Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Proceeds will be used to repay outstanding amounts under a credit facility, which will be used to partially fund the $1 billion purchase price of the TEAK Midstream LLC acquisition, and for general corporate purposes. The additional proceeds resulting from the $75 million upsizing of the deal will be used to pay down the company's revolver by $50 million, with the remainder to go as cash on the company's balance sheet.
Atlas Pipeline is a Moon Township, Pa.-based provider of gas gathering, compression, processing and treating services.
| Issuer: | Atlas Pipeline Partners, LP and Atlas Pipeline Finance Corp.
|
| Amount: | $400 million, increased from $325 million
|
| Maturity: | Nov. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | ABN Amro, Sovereign
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 322 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 15, 2016, then callable at 103.563
|
| Equity clawback: | 35% at 104.75 until May 15, 2016
|
| Change-of-control put: | 101%
|
| Trade date: | May 7
|
| Settlement date: | May 10
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¾% to 5%
|
| Marketing: | Quick to market
|
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