By Andrea Heisinger
New York, Feb. 2 - Williams Partners, LP priced a $3.5 billion bond offering (Baa3/BBB-/BBB-) in three tranches on Tuesday, a source close to the sale said.
A $750 million tranche of 3.8% five-year notes priced at 99.954 to yield 3.81%, or 145 basis points over Treasuries.
A $1.5 billion tranche of 5.25% 10-year notes priced at 99.945 to yield 5.256%, or Treasuries plus 162.5 bps.
A $1.25 billion tranche of 6.3% 30-year bonds was sold at 99.401 to yield 6.343% with a spread of Treasuries plus 180 bps.
The offering was announced on Jan. 19 and priced via Rule 144A.
Bookrunners were Barclays Capital Inc. and Citigroup Global Markets Inc.
Proceeds will be used to fund the cash portion of a restructuring of Williams Cos. Inc. regarding Williams Pipeline Partners LP.
Williams Cos. plans to contribute its gas pipeline and domestic midstream businesses, plus its interests in Williams Pipeline Partners. The company will be known as Williams Partners following the restructuring that is valued at about $12 billion.
Williams Cos. and its natural gas subsidiaries are based in Tulsa, Okla.
| Issuer: | Williams Partners, LP
|
| Issue: | Notes
|
| Amount: | $3.5 billion
|
| Bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc.
|
| Distribution: | Rule 144A
|
| Trade date: | Feb. 2
|
| Settlement date: | Feb. 9
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 15, 2015
|
| Coupon: | 3.8%
|
| Price: | 99.954
|
| Yield: | 3.81%
|
| Spread: | Treasuries plus 145 bps
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 15, 2020
|
| Coupon: | 5.25%
|
| Price: | 99.945
|
| Yield: | 5.256%
|
| Spread: | Treasuries plus 162.5 bps
|
|
|
| 30-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 15, 2040
|
| Coupon: | 6.3%
|
| Price: | 99.401
|
| Yield: | 6.343%
|
| Spread: | Treasuries plus 180 bps
|
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