Published on 12/16/2019 in the Prospect News High Yield Daily.
New Issue: Archrock upsizes to $500 million, prices 8.25-year notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., Dec. 16 – Archrock Partners, LP and Archrock Partners Finance Corp. priced an upsized $500 million issue of senior notes (B2/B+) due April 1, 2028 at par to yield 6¼% in a quick-to-market Monday trade, according to market sources.
The issue size increased from $400 million.
The yield printed in the middle of yield talk in the 6¼% area, and tight to early guidance in the low-to-mid 6% area.
Lead left bookrunner RBC Capital Markets Corp. will bill and deliver.
The Houston-based energy infrastructure company plans to use the proceeds to repay debt under its credit facility and for other partnership purposes.
Archrock Partners has a pure-play focus on midstream natural gas compression.
| Issuer: | Archrock Partners, LP and Archrock Partners Finance Corp.
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| Amount: | $500 million, increased from $400 million
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| Maturity: | April 1, 2028
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| Securities: | Senior notes
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| Lead left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Regions Securities Inc., Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Senior co-manager: | SunTrust Robinson Humphrey Inc.
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| Co-managers: | SMBC Nikko Securities America Inc., BBVA Securities Inc., CIT Capital Securities, Fifth Third Securities Inc., PNC Capital Markets LLC, Raymond James & Associates and FHN Financial Securities
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| Coupon: | 6¼%
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| Price: | Par
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| Yield: | 6¼%
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| Spread: | 439.7 basis points
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| First call: | Make-whole call at Treasuries plus 50 bps until April 1, 2023, then callable at 103.125
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| Equity clawback: | 35% at 106.25 until April 1, 2023
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| Trade date: | Dec. 16
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| Settlement date: | Dec. 20
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| Ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A for life
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| Price talk: | 6¼% area
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| Marketing: | Quick to market
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