Published on 7/22/2014 in the Prospect News High Yield Daily.
New Issue: Regency Energy prices upsized $700 million 5% eight-year notes to yield 5 1/8%
By Paul A. Harris
Portland, Ore., July 22 – Co-issuers Regency Energy Partners LP and Regency Energy Finance Corp. priced an upsized $700 million issue of 5% non-callable senior notes due Oct. 1, 2022 (Ba3/BB) at 99.158 to yield 5 1/8% on Tuesday, according to a syndicate source.
The deal was upsized from $500 million.
The yield printed at the tight end of yield talk in the 5¼% area.
Joint bookrunner Barclays will bill and deliver for the public offering. BBVA, Comerica, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, ABN Amro Securities (USA) LLC, BNP Paribas Securities Corp., Fifth Third Securities Inc., Goldman Sachs & Co. and MUFG were also joint bookrunners.
The Dallas-based mid-continent gas and NGL midstream master limited partnership plans to use the proceeds, including those resulting from the $200 million upsize, for general partnership purposes, including repayment of borrowings outstanding under its revolver.
| Issuers: | Regency Energy Partners LP and Regency Energy Finance Corp.
|
| Amount: | $700 million, increased from $500 million
|
| Proceeds: | $694 million
|
| Maturity: | Oct. 1, 2022
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), BBVA Securities Inc., Comerica Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, ABN Amro Securities (USA) LLC, BNP Paribas Securities Corp., Fifth Third Securities Inc., Goldman Sachs & Co., MUFG
|
| Senior co-manager: | Capital One Securities Inc.
|
| Coupon: | 5%
|
| Price: | 99.158
|
| Yield: | 5 1/8%
|
| Call protection: | Non-callable
|
| Trade date: | July 22
|
| Settlement date: | July 25
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5¼% area
|
| Marketing: | Quick to market
|
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