By Cady Vishniac
Detroit, Nov. 17 – Phillips 66 gave additional details of its $1.75 billion three-tranche sale of guaranteed senior notes (A3/BBB+), including the price and yield of the notes, according to a market source. The notes priced on Monday.
A $450 million tranche of floating-rate notes due Feb. 15, 2024 priced at Libor plus 62 basis points at par.
Phillips 66 also sold $800 million of 0.9% notes due Feb. 15, 2024 at a spread of Treasuries plus 70 bps. These notes priced at 99.892 to yield 0.934%.
The notes were talked to price at the 100 bps spread area.
Phillips 66 sold $500 million of 1.3% notes due Feb. 15, 2026 at a spread of Treasuries plus 90 bps. The notes priced at 99.96 to yield 1.308%.
The 2026 notes have a make-whole call at Treasuries plus 15 bps prior to Jan. 15, 2026 and are callable at par plus interest afterward.
The notes were talked to price at the Treasuries plus 125 bps area.
RBC Capital Markets, LLC, Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, BNP Paribas, Securities Corp., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC were the joint bookrunners.
The notes are guaranteed by Phillips 66 Co.
Proceeds will be used to repay borrowings under the company’s 364-day term loan facility that matures in March 2021.
Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
| Issuer: | Phillips 66
|
| Guarantor: | Phillips 66 Co.
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| Amount: | $1.75 billion
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| Bookrunners: | RBC Capital Markets, LLC, Barclays, Citigroup Global Markets Inc., Commerz Markets LLC, BNP Paribas, Securities Corp., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | CIBC World Markets Corp., Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC
|
| Pricing date: | Nov. 16
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Distribution: | SEC registered
|
|
|
| Floaters due 2024
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| Amount: | $450 million
|
| Description: | Floating-rate senior notes
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| Maturity: | Feb. 15, 2024
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| Coupon: | Libor plus 62 bps
|
| Price: | Par
|
| Yield: | Libor plus 62 bps
|
| Call option: | Par plus interest beginning Nov. 19, 2021
|
|
|
| Notes due 2024
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| Amount: | $800 million
|
| Description: | Senior notes
|
| Maturity: | Feb. 15, 2024
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| Coupon: | 0.9%
|
| Price: | 99.892
|
| Yield: | 0.934%
|
| Spread: | Treasuries plus 70 bps
|
| Call option: | Par plus interest beginning Nov. 19, 2021
|
| Price guidance: | Treasuries plus 100 bps area
|
|
|
| Notes due 2026
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| Amount: | $500 million
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| Description: | Senior notes
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| Maturity: | Feb. 15, 2026
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| Coupon: | 1.3%
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| Price: | 99.96
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| Yield: | 1.308%
|
| Spread: | Treasuries plus 90 bps
|
| Call option: | Par plus a make-whole premium of Treasuries plus 15 bps and interest prior to Jan. 15, 2026; par plus interest afterward
|
| Price guidance: | Treasuries plus 125 bps area
|
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