Howard Midstream to price $500 million five-year notes on Thursday; initial talk 9% area

By Paul A. Harris

Portland, Ore., June 28 – Howard Midstream Energy Partners, LLC began marketing a $500 million offering senior notes due July 2028 (expected ratings B3/B-) on Wednesday, according to market sources.

Initial guidance has the notes coming to yield in the 9% area, a sellside source said.

An investor conference call is scheduled to begin at 10:30 a.m. ET on Thursday, and the Rule 144A and Regulation S for life deal is set to price on Thursday afternoon.

The five-year notes first become callable after two years at par plus 50% of the coupon.

Lead left bookrunner RBC Capital Markets LLC will bill and deliver. TD Securities (USA) LLC is the joint active bookrunner.

Capital One Securities Inc., CIBC World Markets Corp., Citizens Capital Markets Inc., ING Financial Markets LLC, MUFG Securities Americas Inc., Regions Securities LLC, SMBC Nikko Securities America Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc. are joint bookrunners.

Cadence, Comerica Securities Inc., First Horizons and Zions First National Bank are co-managers.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.