Published on 10/27/2016 in the Prospect News Investment Grade Daily.
New Issue: Buckeye Partners sells $600 million 3.95% 10-year notes at 215 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., Oct. 27 – Buckeye Partners, LP priced $600 million of 3.95% 10-year senior notes at 99.644 to yield 3.993% on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB-/BBB-) priced with a spread of 215 basis points over Treasuries.
Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
Proceeds will be used to acquire 50% of the outstanding share capital of VIP Terminals Holding BV, owner of VTTI BV. If the acquisition is not completed by July 1, 2017, the notes will be redeemed at 101 plus accrued interest.
The refined petroleum products pipeline system is based in Houston.
| Issuer: | Buckeye Partners, LP
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | Dec. 1, 2026
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc.
|
| Co-managers: | BB&T Capital Markets, Morgan Stanley & Co. LLC
|
| Coupon: | 3.95%
|
| Price: | 99.644
|
| Yield: | 3.993%
|
| Spread: | Treasuries plus 215 bps
|
| Call features: | If merger not completed before July 1, 2017 at 101; any time prior to three months before maturity at greater of par and Treasuries plus 35 bps; any time after date three months before maturity at par
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 7
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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