Published on 8/7/2018 in the Prospect News Investment Grade Daily.
New Issue: Western Gas prices $750 million of split-rated senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Aug. 7 – Western Gas Partners, LP priced $750 million of split-rated senior notes (Ba1/BBB-/BBB-) in two tranches on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of 4.75% 10-year notes at 99.818 to yield 4.773%, or a spread of 180 basis points over Treasuries.
It also priced $350 million of 5.5% 30-year notes at 98.912 to yield 5.575%. The bonds priced at 245 bps over Treasuries.
Wells Fargo Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments Inc., Barclays, BB&T Capital Markets, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds will be used to repay the company’s maturing 2018 notes, repay debt under its 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
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| Amount: | $750 million
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| Description: | Senior notes
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| Bookrunners: | Wells Fargo Securities LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments Inc., Barclays, BB&T Capital Markets, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and Scotia Capital (USA) Inc.
|
| Co-managers: | Capital One Securities, Inc., Morgan Stanley | & Co. LLC, TD Securities (USA) LLC and SG Americas Securities, LLC
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 9
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| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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|
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| Ten-year notes
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| Amount: | $400 million
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| Maturity: | Aug. 15, 2028
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| Coupon: | 4.75%
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| Price: | 99.818
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| Yield: | 4.773%
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| Spread: | Treasuries plus 180 bps
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| Call features: | Make-whole call before May 15, 2028 at Treasuries plus 30 bps; thereafter at par
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|
| Thirty-year notes
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| Amount: | $350 million
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| Maturity: | Aug. 15, 2048
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| Coupon: | 5.5%
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| Price: | 98.912
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| Yield: | 5.575%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole call before Feb. 15, 2048 at Treasuries plus 40 bps; thereafter at par
|
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