Published on 7/7/2016 in the Prospect News Investment Grade Daily.
New Issue: Sunoco Logistics prices $550 million 3.9% 10-year notes at 255 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., July 7 – Sunoco Logistics Partners Operations LP sold an upsized $550 million of 3.9% 10-year senior notes with a spread of 255 basis points over Treasuries on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes (Baa3/BBB/BBB) priced at 99.696 to yield 3.937%.
The deal was upsized by $50 million, and initial price talk was in the 300 bps area over Treasuries before tightening to the 260 bps area, plus or minus 5 bps.
The notes are guaranteed by Sunoco Logistics Partners LP.
Mizuho Securities, BNP Paribas Securities Corp., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BBVA Securities Inc., Citizens Capital Markets, Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. were the bookrunners.
Proceeds will be used to repay outstanding debt and for general partnership purposes.
Philadelphia-based Sunoco transports and stores crude oil and natural gas.
| Issuer: | Sunoco Logistics Partners Operations LP
|
| Guarantor: | Sunoco Logistics Partners LP
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| Amount: | $550 million
|
| Maturity: | July 15, 2026
|
| Securities: | Senior notes
|
| Bookrunners: | Mizuho Securities, BNP Paribas Securities Corp., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, BBVA Securities Inc., Citizens Capital Markets, Inc., Deutsche Bank Securities Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | Comerica Securities, Inc., DNB Markets, Inc.
|
| Coupon: | 3.9%
|
| Price: | 99.696
|
| Yield: | 3.937%
|
| Spread: | Treasuries plus 255 bps
|
| Call feature: | Make-whole call at Treasuries plus 40 bps; par call on or after April 15, 2026
|
| Trade date: | July 7
|
| Settlement date: | July 12
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 260 bps area, plus or minus 5 bps
|
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