Published on 8/5/2020 in the Prospect News High Yield Daily.
New Issue: Harvest Midstream prices $600 million 7½% eight-year notes at par
By Paul A. Harris
Portland, Ore., Aug. 5 – Harvest Midstream I LP priced a $600 million issue of eight-year senior notes (B1/BB-/BB-) at par to yield 7½% on Wednesday, according to market sources.
The yield printed at the tight end of the 7½% to 7¾% yield talk. Early guidance was 7¾% to 8%.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
The Houston-based energy midstream services provider plans to use the proceeds to repay debt under its revolving credit facility and term loan and for general partnership purposes.
| Issuer: | Harvest Midstream I, LP
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| Amount: | $600 million
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| Maturity: | Sept. 1, 2028
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| Securities: | Senior notes
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| Lead left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
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| Senior co-managers: | CIBC World Markets Corp., Fifth Third Securities Inc., SMBC Nikko Securities America Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc.
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| Co-managers: | ABN Amro Inc., BOK Financial Securities Inc., Comerica Securities Inc., DNB Markets, Mizuho Securities USA Inc. and Raymond James & Associates Inc.
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| Coupon: | 7½%
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| Price: | Par
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| Yield: | 7½%
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| Spread: | 704.8 bps
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| Call protection: | Three years
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| Trade date: | Aug. 5
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| Settlement date: | Aug. 10
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% to 7¾%
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| Marketing: | Roadshow
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