Published on 12/14/2020 in the Prospect News High Yield Daily.
New Issue: Archrock Partners sells upsized $300 million tap of 6¼% notes due 2028 at 104.875
By Paul A. Harris
Portland, Ore., Dec. 14 – Archrock Partners, LP and Archrock Partners Finance Corp. price and upsized $300 million add-on to their 6¼% senior notes due April 1, 2028 (expected ratings B2/B+) at 104.875 to yield 5.183% in a Monday drive-by, according to market sources.
The issue size increased from $250 million.
The issue price came rich to price talk in the 104.5 area. Initial talk was 104 to 104.5.
Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Regions Securities LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC.
The Houston-based energy infrastructure company plans to use the proceeds to pay down its credit facility and for general partnership purposes.
| Issuers: | Archrock Partners, LP and Archrock Partners Finance Corp.
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| Amount: | $300 million, increased from $250 million
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| Maturity: | April 1, 2028
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| Security description: | Add-on to 6¼% senior notes due April 1, 2028
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| Left lead bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., Regions Securities LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
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| Senior co-manager: | Trust Securities Inc.
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| Co-managers: | SMBC Nikko Securities America Inc., CIT Capital Securities LLC, PNC Capital Markets LLC, Fifth Third Securities Inc., BBVA Securities Inc., Raymond James & Associates and FHN Financial Securities Corp.
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| Coupon: | 6¼%
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| Price: | 104.875
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| Yield: | 5.183%
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| Spread: | 453 bps
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| First call: | April 1, 2023 at 103.125
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| Trade date: | Dec. 14
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| Settlement date: | Dec. 17
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| Expected ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 104.5 area
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| Marketing: | Drive-by
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| Original issue: | $500 million priced in December 2019
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| Fungibility: | Rule 144A add-on notes will immediately become fungible with the original notes, Regulation S add-on notes will become fungible with the original notes after 40 days
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