By Rebecca Melvin and Cristal Cody
Concord, N.H., Jan. 14 – EIG Pearl Holdings Sarl priced $2.5 billion of senior secured notes in two tranches (A1//A) on Thursday, according to a market source on Friday.
Pricing for both tranches, which represent the issuer’s inaugural international bond offering, came on top of initial talk.
The $1.25 billion 3.545% notes due Aug. 31, 2036 priced at par with a spread over U.S. Treasuries of 185 basis points. They had been talked with a 185 bps area spread.
The $1.25 billion 4.387% notes due Nov. 30, 2046 priced at par for a spread over Treasuries of 235 bps. They had been talked in the 235 bps area over Treasuries.
The weighted average life of the amortizing bonds is 10.5 years and 23.7 years, respectively.
Proceeds of the Rule 144A and Regulation S notes will be used to partly refinance a $10.8 billion bridge facility used as part of the issuer’s acquisition of a 49% stake in Aramco Oil Pipelines Co. (AssetCo).
The issuer owns 49% of the issued share capital of AssetCo, and Saudi Arabian Oil Co. (Aramco) owns the remaining 51%. In June 2021, AssetCo and Aramco entered into a 25-year lease and leaseback arrangement regarding Aramco’s network of current and future pipelines used to transport stabilized crude oil within the Kingdom (the Pipelines), under which AssetCo received rights to a quarterly tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments. Aramco retains sole control and management of, and is solely responsible for operating and maintaining, the pipelines.
BNP Paribas, Citigroup, First Abu Dhabi Bank, HSBC, JPMorgan (billing and delivery), Mizuho, MUFG, SMBC Nikko, Abu Dhabi Commercial Bank, Bank of China, Credit Agricole CIB and Standard Chartered Bank are joint bookrunners of the notes.
Agricultural Bank of China, BofA Securities, ICBC, IMI-Intesa Sanpaolo, Natixis, Riyad Capital and Societe Generale are co-lead managers.
The notes are expected to be listed on the London Stock Exchange.
EIG Pearl is indirectly owned 89.45% by an aggregator vehicle managed by EIG Management Co. LLC and its affiliates and 10.55% by a wholly owned subsidiary of Mubadala Investment Co. PJSC.
The EIG aggregator includes institutional investors from the United States, China and Saudi Arabia, Korea and other countries.
| Issuer: | EIG Pearl Holdings Sarl
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| Amount: | $2.5 billion
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| Issue: | Senior secured notes
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| Bookrunners: | BNP Paribas, Citigroup, First Abu Dhabi Bank, HSBC, JPMorgan (billing and delivery), Mizuho, MUFG, SMBC Nikko, Abu Dhabi Commercial Bank, Bank of China, Credit Agricole CIB and Standard Chartered Bank
|
| Co-lead managers: | Agricultural Bank of China, BofA Securities, ICBC, IMI-Intesa Sanpaolo, Natixis, Riyad Capital and Societe Generale
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| Trade date: | Jan. 13
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| Settlement date: | Jan. 22
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| Issuer ratings: | Moody's: A1
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| Fitch: A
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| Distribution: | Rule 144A and Regulation S
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| 2036 notes
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| Amount: | $1.25 billion
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| Maturity: | Aug. 31, 2036
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| Profit rate: | 3.545%
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| Price: | Par
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| Yield: | 3.545%
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| Spread: | Treasuries plus 185 bps
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| Price talk: | Treasuries plus 185 bps area
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| ISINs: | XS2400630005, US28249NAA90
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| 2046 notes
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| Amount: | $1.25 billion
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| Maturity: | Nov. 30, 2046
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| Profit rate: | 4.387%
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| Price: | Par
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| Yield: | 4.387%
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| Spread: | Treasuries plus 235 bps
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| Price talk: | Treasuries plus 235 bps area
|
| ISINs: | XS2400630187, US28249NAB73
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