New Issue: Tesoro prices $300 million 10-year notes at par to yield 5 1/8%

By Paul A. Harris

Portland, Ore., March 4 - Tesoro Corp. priced a $300 million issue of 10-year senior notes (Ba2/BB+/) at par to yield 5 1/8% on Tuesday, according to an informed source.

The yield printed at the tight end of yield talk in the 5¼% area.

RBS Securities Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and Mitsubishi UFJ Securities were the joint bookrunners.

The San Antonio-based refiner and marketer of petroleum products plans to use the proceeds to fund the redemption of its 9¾% notes due June 1, 2019.

Issuer:	Tesoro Corp.
Amount:	$300 million
Maturity:	April 1, 2024
Securities:	Senior notes
Bookrunners:	RBS Securities Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities
Co-managers:	Mizuho Securities USA Inc., Natixis Securities North America Inc.
Coupon:	5 1/8%
Price:	Par
Yield:	5 1/8%
Spread:	245 bps
First call:	April 1, 2019 at 102.563
Change-of-control put:	101%
Trade date:	March 4
Settlement date:	March 18
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	5¼% area
Marketing:	Quick to market

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