By Abigail W. Adams
Portland, Me., April 29 – Harvest Midstream I, LP priced $500 million of eight-year senior notes (B1/BB-/BB-) at par to yield 7½% in a Monday drive-by, according to a market source.
Pricing came at the tight end of talk for a yield of 7½% to 7 5/8%.
Early guidance was for a yield in the 7¾% area.
The notes are non-callable for three years.
Wells Fargo Securities LLC led the Rule 144A and Regulation S offering. J.P. Morgan Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc. were also bookrunners.
Proceeds will be used to repay a portion of the company’s term loan A due 2026 and its revolving credit facility.
Harvest Midstream is a Houston-based energy midstream services provider.
| Issuer: | Harvest Midstream I, LP
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | May 15, 2032
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC, Mizuho Securities USA Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Comerica Securities, Inc., KeyBanc Capital Markets Inc., FHN Financial Securities Corp. and BOK Financial Securities, Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| First call: | May 15, 2027
|
| Trade date: | April 29
|
| Settlement date: | May 6
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 7½% to 7 5/8%
|
| Marketing: | Drive-by
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
