By Paul A. Harris
Portland, Ore., Nov. 25 – Hess Midstream Partners LP priced an upsized $550 million issue of 8.5-year senior notes (Ba2/BB+/BB+) at par to yield 5 1/8% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 5 1/8% to 5¼% yield talk. Initial talk was in the 5¼% area.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, MUFG, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
The Houston-based master limited partnership plans to use the proceeds to finance the acquisition of Hess Infrastructure Partners LP, as well as to partially repay debt under Hess Infrastructure's credit facility and partially fund a distribution to Hess Infrastructure's sponsors.
Hess Midstream was formed to own, operate, develop and acquire midstream assets to provide services to Hess Corp. and third-party customers. Hess Midstream’s assets are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota.
| Issuer: | Hess Midstream Partners LP
|
| Amount: | $550 million, increased from $500 million
|
| Maturity: | June 15, 2028
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Wells Fargo Securities LLC, MUFG, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 339 bps
|
| Call protection: | 3.5 years
|
| Trade date: | Nov. 25
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5 1/8% to 5¼%
|
| Marketing: | Quick to market
|
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