Chicago, Jan. 9 – Western Midstream Operating, LP priced four tranches of senior notes (Ba1/BBB-/BBB-) on Thursday, according to a company release.
The offering includes $300 million of floating-rate senior notes due Jan. 13, 2023, talked to price in the Libor plus 125 basis points to 137.5 bps area.
In fixed-rate tranches there was $1 billion of 3.1% senior notes due Feb. 1, 2025, priced at 99.962, initially talked to print in the Treasuries plus 187.5 bps to 200 bps spread area.
There is also $1.2 billion of 4.05% senior notes due Feb. 1, 2030, priced at 99.9, initially guided to price at a spread in the 250 bps to 262.5 bps area.
And, the deal also included $1 billion of 5.25% senior notes due Feb. 1, 2050, priced at 99.442, initially talked in the Treasuries plus 325 bps to 337.5 bps area.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and PNC Capital Markets LLC are the bookrunners.
The company held fixed income investor calls on Wednesday for a five-tranche deal after announcing the registered offering on Tuesday.
The notes will have make-whole and par calls and feature a change-of-control put at 101%.
The issue also has covenants that limit the company’s ability to create liens on its principal properties, engage in sale and leaseback transactions or merge or consolidate with another entity.
Proceeds from the deal will be used to repay and terminate the company’s $3 billion term loan credit facility with any remaining proceeds to be used for general partnership purposes.
The Woodlands, Tex.-based company owns, develops and operates midstream energy assets. The issuer is a wholly owned subsidiary of Western Midstream Partners, LP.
| Issuer: | Western Midstream Operating, LP
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| Amount: | $3.5 billion
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and PNC Capital Markets LLC
|
| Call features: | Make-whole and par calls
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| Put: | Change-of-control put at 101
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| Pricing date: | Jan. 9
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| Settlement date: | Jan. 13
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
|
|
| Floating-rate notes
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| Amount: | $300 million
|
| Maturity: | Jan. 13, 2023
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| Price talk: | Libor plus 125 bps to 137.5 bps area
|
|
|
| 2025 notes
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| Amount: | $1 billion
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| Maturity: | Feb. 1, 2025
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| Coupon: | 3.1%
|
| Price: | 99.962
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| Price talk: | Treasuries plus 187.5 bps to 200 bps spread area
|
|
|
| 2030 notes
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| Amount: | $1.2 billion
|
| Maturity: | Feb. 1, 2030
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| Coupon: | 4.05%
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| Price: | 99.9
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| Price talk: | Treasuries plus 250 bps to 262.5 bps area
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|
|
| 2050 notes
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| Amount: | $1 billion
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| Maturity: | Feb. 1, 2050
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| Coupon: | 5.25%
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| Price: | 99.442
|
| Price talk: | Treasuries plus 325 bps to 337.5 bps area
|
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