Published on 9/11/2020 in the Prospect News High Yield Daily.
New Issue: Tallgrass Energy prices upsized $600 million five-year notes at par to yield 7½%
By Paul A. Harris
Portland, Ore., Sept. 11 – Tallgrass Energy Partners, LP and Tallgrass Energy Finance Corp. priced an upsized $600 million issue of five-year senior notes (B1/BB-/BB-) at par to yield 7½% on Friday, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 7½% to 7¾% yield talk. Initial guidance was in the 7¾% area.
Left bookrunner RBC Capital Markets Corp. will bill and deliver.
The Leawood, Kan.-based midstream energy company plans to use the proceeds to pay down its revolving credit facility.
| Issuers: | Tallgrass Energy Partners, LP and Tallgrass Energy Finance Corp.
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| Amount: | $600 million, increased from $500 million
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| Maturity: | Oct. 1, 2025
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| Securities: | Senior notes
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| Left bookrunner: | RBC Capital Markets Corp. (bill and deliver)
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| Joint bookrunners: | Blackstone, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
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| Co-manager: | Raymond James & Associates
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 723 bps
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| First call: | Oct. 1, 2022 at 105.625
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| Trade date: | Sept. 11
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| Settlement date: | Sept. 16
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% to 7¾%
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| Marketing: | Roadshow
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