Regency Energy plans to sell $500 million 8.25-year bullet on Tuesday

By Paul A. Harris

Portland, Ore., July 22 – Co-issuers Regency Energy Partners LP and Regency Energy Finance Corp. plan to price a $500 million offering of non-callable senior notes due Oct. 1, 2022 (expected ratings Ba3/BB) on Tuesday following a late-morning conference call with investors, according to a syndicate source.

Joint bookrunner Barclays will bill and deliver for the public offering. BBVA, Comerica, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, ABN Amro, BNP Paribas Securities Corp., Fifth Third Bank, Goldman Sachs & Co. and MUFG are also joint bookrunners. Capital One is a co-manager.

The notes have a par call three months prior to maturity and feature a 101% poison put.

The new notes rank pari passu with all existing and future senior debt, and feature covenants similar to the company’s existing notes due in 2022; certain covenants fall away subject to investment-grade ratings from either Moody’s Investors Service or Standard & Poor’s.

The Dallas-based mid-continent gas and NGL midstream master limited partnership plans to use the proceeds for general partnership purposes, including repayment of borrowings outstanding under its revolver.

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