By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 27 – Phillips 66 Co. priced $1.25 billion of guaranteed senior notes (BBB+) in two tranches on Monday, according to a market source.
Phillips 66 sold $750 million of 4.95% notes due Dec. 1, 2027 at a spread of Treasuries plus 140 basis points.
The notes were talked to price at the 170 bps spread area.
Phillips 66 sold $500 million of 5.3% notes due Feb. 15, 2026 at a spread of Treasuries plus 182 bps.
The notes were talked to price at the Treasuries plus 205 bps area.
Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Truist Securities, Inc. are the joint bookrunners.
The notes are guaranteed by Phillips 66.
Proceeds from the notes will be used, along with borrowings under a term loan and cash on hand, to fund Phillips 66’s merger with DCP Midstream, LP.
The offering is not conditioned on closing of the merger. However, if the merger does not occur on or prior to 11:59 p.m. ET on Dec. 31, 2023 or if the merger agreement is not terminated by then, Phillips 66 will be required to redeem the notes at a special mandatory redemption price of 101.
Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses.
| Issuer: | Phillips 66 Co.
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| Guarantor: | Phillips 66
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| Amount: | $1.25 billion
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| Description: | Senior notes
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| Bookrunners: | Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and Truist Securities, Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Bracewell LLP
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| Trade date: | March 27
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| Ratings: | S&P: BBB+
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| Distribution: | SEC registered
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|
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| Notes due 2027
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| Amount: | $750 million
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| Maturity: | Dec. 1, 2027
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| Coupon: | 4.95%
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| Spread: | Treasuries plus 140 bps
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| Price guidance: | Treasuries plus 170 bps area
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|
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| Notes due 2033
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| Amount: | $500 million
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| Maturity: | June 20, 2033
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| Coupon: | 5.3%
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| Spread: | Treasuries plus 182 bps
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| Price guidance: | Treasuries plus 205 bps area
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