Howard Midstream talks $400 million five-year notes to yield 6¾%-7%; pricing Thursday

By Paul A. Harris

Portland, Ore., Dec. 9 – Howard Midstream Energy Partners, LLC talked its $400 million offering of senior notes due January 2027 (expected ratings B3/B) to yield 6¾% to 7%, slightly inside of initial guidance in the 7% area, according to market sources.

The Rule 144A and Regulation S for life deal is set to price on Thursday.

Left bookrunner RBC Capital Markets LLC will bill and deliver. Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., MUFG, TD Securities (USA) LLC, Truist Securities Inc., ING Financial Markets LLC, Regions Securities LLC, U.S. Bancorp Investments Inc. and SMBC Nikko Securities America Inc. are the joint bookrunners.

Cadence, Comerica Securities Inc., FHN Financial Securities Corp. and Zions are the co-managers.

The five-year notes become callable after two years at par plus 75% of the coupon.

The San Antonio-based energy infrastructure company plans to use the proceeds to repay debt.

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