Western Refining talks $300 million eight-year notes to yield 7½% to 7¾%, pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 5 – Western Refining Logistics, LP and its wholly owned subsidiary, WNRL Finance Corp., talked their $300 million offering of eight-year senior notes (B3/B) to yield 7½% to 7¾%, a market source said on Thursday.

Books close at 10 a.m. ET Friday and the deal is set to price subsequently.

The Rule 144A and Regulation S offering with registration rights is being brought to market via joint global coordinators BofA Merrill Lynch and Wells Fargo Securities LLC and joint bookrunners Credit Agricole CIB, RBS Securities Inc. and Stifel, Nicolaus & Co. Inc.

Barclays, Comerica Bank, Deutsche Bank Securities Inc., PNC Capital Markets LLC, RBC Capital Markets Corp., Regions Bank and UBS Securities LLC will be the co-managers.

The notes will have three years of call protection and then will become callable at par plus 75% of the coupon.

The indenture will also contain a standard equity clawback provision allowing for the repurchase of up to 35% of the notes during their first three years of issue using equity proceeds and a change-of-control provision allowing holders to receive 101% plus accrued interest.

Western Refining Logistics, an El Paso, Texas-based operator of pipelines, storage tanks and other midstream energy facilities, intends to use a portion of the net proceeds to repay the outstanding balance of its revolving credit facility, with the remaining amount to be used for general partnership purposes.

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