Published on 1/25/2021 in the Prospect News High Yield Daily.
New Issue: Harvest Midstream upsizes to $200 million, prices tap of 7½% notes due 2028 at 105.25
By Paul A. Harris
Portland, Ore., Jan. 25 – Harvest Midstream I LP priced an upsized $200 million add-on to its 7½% senior notes due Sept. 1, 2028 (existing ratings B1/BB-/BB-) at 105.25 to yield 6.387% in a Monday drive-by, according to market sources.
The issue size increased from $150 million.
The price came through the rich end of the 104.5 to 105 price talk. Initial talk was 104.5.
RBC Capital Markets LLC was at the left of a syndicate of bookrunners that also included J.P. Morgan Securities LLC. Wells Fargo Securities LLC, BBVA Securities Inc. and Mizuho Securities USA LLC.
The Houston-based energy midstream services provider plans to use the proceeds to pay down its revolver.
| Issuer: | Harvest Midstream I, LP
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| Amount: | $200 million, increased from $150 million
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| Maturity: | Sept. 1, 2028
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| Security description: | Add-on to 7½% senior notes due Sept. 1, 2028
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| Bookrunners: | RBC Capital Markets LLC, J.P. Morgan Securities LLC. Wells Fargo Securities LLC, BBVA Securities Inc. and Mizuho Securities USA LLC
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| Senior managers: | Capital One Securities Inc., 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 Securities (USA) LLC, BOK Financial Securities Inc., Comerica Securities Inc., DNB Markets Inc., FHN Financial Securities Corp. and Raymond James & Associates Inc.
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| Coupon: | 7½%
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| Price: | 105.25
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| Yield: | 6.387%
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| Spread: | 557.7 bps
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| First call: | Sept. 1, 2023 at 103.75
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| Trade date: | Jan. 25
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| Settlement date: | Jan. 28
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| Existing 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
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| Price talk: | 104.25 to 105
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| Marketing: | Drive-by
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| Original issue: | $600 million priced in August 2020
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