By Andrea Heisinger
New York, Aug. 4 - Magellan Midstream Partners LP sold $300 million of 4.25% senior unsecured notes due Feb. 1, 2021 on Wednesday to yield Treasuries plus 135 basis points, a source close to the sale said.
The notes were priced in line with guidance of 135 bps.
The notes (Baa2/BBB/) priced at 99.633 to yield 4.294%.
Bookrunners were J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC.
Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc. and Mitsubishi UFJ Securities Inc. were the co-managers.
Proceeds will be used to fund a portion of the $289 million cash purchase price for crude oil storage assets and crude oil and refined petroleum products pipelines acquired from BP Pipelines (North America) Inc., and the purchase of crude oil working inventories associated with those assets. Pending that, proceeds may be used for general partnership purposes.
The refined petroleum product transportation and storage company is based in Tulsa, Okla.
| Issuer: | Magellan Midstream Partners LP
|
| Issue: | Senior unsecured notes
|
| Amount: | $300 million
|
| Maturity: | Feb. 1, 2021
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities, Deutsche Bank Securities Inc., Mitsubishi UFJ Securities Inc.
|
| Coupon: | 4.25%
|
| Price: | 99.633
|
| Yield: | 4.294%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Price talk: | 135 bps
|
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