By Paul A. Harris
Portland, Ore., Jan. 4 – Equitrans Midstream Corp. priced an upsized $1.9 billion of senior notes (Ba3/BB-/BB) in two bullet tranches on Monday, according to market sources.
The deal, which was upsized from $1.75 billion, featured $800 million of eight-year notes, which priced at par to yield 4½%. The yield printed at the tight end of the 4½% to 4¾% yield talk. Initial guidance which was in the high 4% area.
The company also priced $1.1 billion of 10-year notes at par to yield 4¾%. The yield printed at the tight end of the 4¾% to 5% yield talk and tighter than initial guidance in the 5% area.
In addition to the upsizing, the market was anticipating the addition of a tranche of 12-year notes, sources said, adding that the longer tranche ultimately did not materialize.
Active bookrunner Barclays will bill and deliver. BofA Securities Inc. and J.P. Morgan Securities LLC are also active bookrunners.
Joint bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC.
The Canonsburg, Pa.-based midstream company plans to use the proceeds to repay its outstanding term loan A due 2022, to fund tender offers for its 4¾% notes due 2023 and 4% notes due 2024 and for general partnership purposes.
The additional proceeds resulting from the $150 million upsizing of the deal will be used to increase the size of the tender offers to $500 million from $350 million.
| Issuer: | EQM Midstream Partners, LP
|
| Amount: | $1.9 billion, increased from $1.75 billion
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| Securities: | Senior notes
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| Active bookrunners: | Barclays (bill and deliver), BofA Securities Inc. and J.P. Morgan Securities LLC
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| Joint bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, PNC Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Senior co-managers: | SMBC Nikko Securities America Inc. and U.S. Bancorp Investments Inc.
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| Co-managers: | Truist Securities Inc. and CIBC World Markets Corp.
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| Trade date: | Jan. 4
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| Settlement date: | Jan. 8
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| Ratings: | Moody's: Ba3
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| S&P: BB-
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| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Drive-by
|
|
|
| Eight-year notes
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| Amount: | $800 million
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| Maturity: | Jan. 15, 2029
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| Coupon: | 4½%
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| Price: | Par
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| Yield: | 4½%
|
| Spread: | 375 bps
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| Call protection: | Non-callable
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| Price talk: | 4½% to 4¾%
|
|
|
| 10-year notes
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| Amount: | $1.1 billion
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| Maturity: | Jan. 15, 2031
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| Coupon: | 4¾%
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| Price: | Par
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| Yield: | 4¾%
|
| Spread: | 388 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4¾% to 5%
|
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