Published on 2/22/2018 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Western Gas gives more details on new $1.1 billion two-tranche notes
By Devika Patel
Knoxville, Tenn., Feb. 22 – Western Gas Partners, LP offered further details about a $1.1 billion sale of senior notes (Ba1/BBB-/BBB-) that priced in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $400 million of 4.5% 10-year notes with a spread of 162.5 basis points over Treasuries. These notes priced at 99.435 to yield 4.571%.
Western Gas priced $700 million of 5.3% 30-year notes with a 212.5 bps over Treasuries spread. These notes priced at 99.169 to yield 5.356%.
The notes priced on the tight side of guidance.
Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, MUFG, TD Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay debt under the company’s revolving credit facility and for general partnership purposes, including capital expenditures.
The Woodlands, Texas-based company owns, develops and operates midstream energy assets in the United States.
| Issuer: | Western Gas Partners, LP
|
| Amount: | $1.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Mizuho Securities USA Inc., Credit Suisse Securities (USA) LLC, MUFG, TD Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BMO Capital Markets Corp., BB&T Capital Markets, Capital One Securities, Inc., Comerica Securities, Inc. and SG Americas Securities LLC
|
| Trade date: | Feb. 21
|
| Settlement date: | March 2
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2028
|
| Coupon: | 4.5%
|
| Price: | 99.435
|
| Yield: | 4.571%
|
| Spread: | Treasuries plus 162.5 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 1, 2027, then a par call
|
| Price guidance: | Treasuries plus 165 bps area
|
|
|
| 30-year notes
|
| Amount: | $700 million
|
| Maturity: | March 1, 2048
|
| Coupon: | 5.3%
|
| Price: | 99.169
|
| Yield: | 5.356%
|
| Spread: | Treasuries plus 212.5 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Sept. 1, 2047, then a par call
|
| Price guidance: | Treasuries plus 215 bps area
|
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