Tesoro Logistics to price $750 million eight-year notes on Tuesday; initial guidance 5½% area

By Paul A. Harris

Portland, Ore., Nov. 29 – Tesoro Logistics LP and Tesoro Logistics Finance Corp. plan to sell $750 million of senior notes due January 2025 (expected ratings Ba3/BB+) on Tuesday afternoon following a late-morning conference call with investors, according to a syndicate source.

Initial guidance is in the 5½% area.

RBC Capital Markets Corp. is the lead left bookrunner for the public offering. BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., PNC Capital Markets and TD Securities are the joint bookrunners.

The notes come with four years of call protection and feature a three-year 35% equity clawback and a 101% poison put.

The San Antonio-based provider of midstream services plans to use the proceeds to repay borrowings under its dropdown credit facility and for general partnership purposes, including acquisitions.

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