Published on 1/16/2019 in the Prospect News High Yield Daily.
New Issue: DCP Midstream prices upsized $325 million tap of 5 3/8% bullet due 2025 at 100.75
By Paul A. Harris
Portland, Ore., Jan. 16 – DCP Midstream Operating LP priced an upsized $325 million add-on to its 5 3/8% senior bullet notes due July 15, 2025 (Ba2/BB/BB+) at 100.75 in a quick-to-market Wednesday trade, market sources said.
The issue size was increased from $150 million.
The reoffer price came at the rich end of the 100.25 to 100.75 price talk. Initial talk was in the par area.
Left lead active bookrunner Mizuho Securities USA Inc. will bill and deliver. Barclays and SunTrust Robinson Humphrey Inc. are also active bookrunners.
Joint bookrunners were Citigroup Global Markets Inc., MUFG and TD Securities (USA) LLC.
The Denver-based master limited partnership plans to use the proceeds, including the additional proceeds resulting from the $175 million upsizing of the deal, for general partnership purposes, including capital expenditures, and to repay debt under its revolving credit facility.
| Issuer: | DCP Midstream Operating LP
|
| Amount: | $325 million, increased from $150 million
|
| Maturity: | July 15, 2025
|
| Security description: | Add-on to 5 3/8% senior notes due July 15, 2025
|
| Left lead bookrunner: | Mizuho Securities USA Inc. (bill and deliver)
|
| Active bookrunners: | Mizuho Securities, Barclays, SunTrust Robinson Humphrey Inc.
|
| Joint bookrunners: | Citigroup Global Markets Inc., MUFG, TD Securities (USA) LLC
|
| Co-managers: | PNC Capital Markets LLC, SMBC Nikko Securities America Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets
|
| Coupon: | 5 3/8%
|
| Price: | 100.75
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until 30 days prior to maturity, then callable at par, otherwise non-callable
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| Trade date: | Jan. 16
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| Settlement date: | Jan. 18
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| Ratings: | Moody's: Ba2
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| S&P: BB
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| Fitch: BB+
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| Distribution: | SEC registered
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| Price talk: | 100.25 to 100.5
|
| Marketing: | Quick to market
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| Original issue: | $500 million priced at par on July 10, 2018
|
| Fungibility: | Add-on notes will become fungible with original notes
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| Total issue size: | $825 million
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