By Cristal Cody
Tupelo, Miss., Jan. 10 – Western Midstream Operating, LP priced $3.5 billion of senior notes (Ba1/BBB-/BBB-) in four tranches on Thursday, according to additional details of the sale provided by an informed source and an FWP filing with the Securities and Exchange Commission.
A $300 million tranche of floating-rate notes due Jan. 13, 2023 priced at par to yield Libor plus 85 basis points, compared to talk in the Libor plus 125 bps to 137.5 bps area.
The company sold $1 billion of 3.1% notes due Feb. 1, 2025 at 99.962 to yield 3.108%, or a Treasuries plus 145 bps spread. Initial price talk was in the in the Treasuries plus 187.5 bps to 200 bps spread area.
Western Midstream priced $1.2 billion of 4.05% notes due Feb. 1, 2030 at a spread of 220 bps over Treasuries, versus initial guidance in the 250 bps to 262.5 bps area. The notes were sold at 99.9 to yield 4.062%.
A $1 billion tranche of 5.25% notes due Feb. 1, 2050 priced at 99.442 to yield 5.287% and with a Treasuries plus 295 bps spread.
Initial price talk was in the Treasuries plus 325 bps to 337.5 bps area.
A fifth tranche was dropped from the final offering.
Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., PNC Capital Markets LLC, BMO Capital Markets Corp., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC were 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.
| Issuer: | Western Midstream Operating, LP
|
| Amount: | $3.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., PNC Capital Markets LLC, BMO Capital Markets Corp., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Capital One Securities, Inc., Raymond James & Associates, Inc., Stifel, Nicolaus & Co., Inc.
|
| Trade date: | Jan. 9
|
| Settlement date: | Jan. 13
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Three-year floaters
|
| Amount: | $300 million
|
| Description: | Floating-rate notes
|
| Maturity: | Jan. 13, 2023
|
| Coupon: | Libor plus 85 bps
|
| Price: | Par
|
| Yield: | Libor plus 85 bps
|
| Call features: | None
|
| Price guidance: | Libor plus 125 bps to 137.5 bps area
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Description: | Fixed-rate notes
|
| Maturity: | Feb. 1, 2025
|
| Coupon: | 3.1%
|
| Price: | 99.962
|
| Yield: | 3.108%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Jan. 1, 2025 at Treasuries plus 25 bps; thereafter at par
|
| Price guidance: | Treasuries plus 187.5 bps to 200 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Description: | Fixed-rate notes
|
| Maturity: | Feb. 1, 2030
|
| Coupon: | 4.05%
|
| Price: | 99.9
|
| Yield: | 4.062%
|
| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole call before Nov. 1, 2029 at Treasuries plus 35 bps; thereafter at par
|
| Price guidance: | Treasuries plus 250 bps to 262.5 bps spread area
|
|
|
| 30-year notes
|
| Amount: | $1 billion
|
| Description: | Fixed-rate notes
|
| Maturity: | Feb. 1, 2050
|
| Coupon: | 5.25%
|
| Price: | 99.442
|
| Yield: | 5.287%
|
| Spread: | Treasuries plus 295 bps
|
| Call features: | Make-whole call before Aug. 1, 2049 at Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 325 bps to 337.5 bps spread area
|
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