Published on 6/29/2023 in the Prospect News High Yield Daily.
New Issue: Howard Midstream prices upsized $550 million five-year notes at par to yield 8 7/8%
By Paul A. Harris
Portland, Ore., June 29 – Howard Midstream Energy Partners, LLC priced an upsized $550 million issue of five-year senior notes (B3/B+) at par to yield 8 7/8% on Thursday, according to market sources.
The issue size increased from $500 million.
The yield printed in the middle of the 8¾% to 9% yield talk. Initial guidance was in the 9% area.
The deal was playing to $400 million of reverse inquiry, a sellside source said.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were TD Securities (USA) LLC, Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., MUFG Securities Americas Inc., Truist Securities, Inc., ING Financial Markets LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
The San Antonio-based diversified energy infrastructure company plans to use the proceeds, including the incremental proceeds resulting from the $50 million upsizing of the deal, to repay debt under its revolver.
The full size of the revolver draw that Howard Midstream came to the market to address is $600 million.
| Issuer: | Howard Midstream Energy Partners, LLC
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| Amount: | $550 million, increased from $500 million
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| Issue: | Senior notes
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| Maturity: | July 15, 2028
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| Left bookrunner: | RBC Capital Markets, LLC
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| Joint bookrunners: | TD Securities (USA) LLC, Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., MUFG Securities Americas Inc., Truist Securities, Inc., ING Financial Markets LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 8 7/8%
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| Price: | Par
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| Yield: | 8 7/8%
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| Spread: | 473.2 bps
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| First call: | July 15, 2025 at 104.438
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| Trade date: | June 29
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| Settlement date: | July 6
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| Ratings: | Moody’s: B3
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 8¾% to 9%
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| Marketing: | Roadshow
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