Tallgrass Energy begins tender offer for 7˝% senior notes due 2025

By Marisa Wong

Los Angeles, Jan. 16 – Tallgrass Energy Partners, LP announced it has begun a cash tender offer to purchase any and all of its $600 million outstanding 7˝% senior notes due 2025 (Cusips: 87470LAH4, U8302LAH1) co-issued by wholly owned subsidiary Tallgrass Energy Finance Corp.

Tallgrass is offering to purchase the notes at $1,012.50 per $1,000 principal amount, plus accrued interest to but excluding the initial settlement date.

The tender offer will expire at 5 p.m. ET on Jan. 22. Tendered notes may be withdrawn at any time before the expiration time.

Settlement for notes tendered prior to the expiration time and accepted for purchase is expected to be on Jan. 23. Settlement of notes tendered under guaranteed delivery procedures is expected to be on Jan. 25,

Additionally, Tallgrass intends, but is not obligated, to deposit funds with the trustee sufficient to satisfy and discharge the indenture governing any and all notes not purchased in the tender offer, if any, until the notes are redeemed on Oct. 1, 2024 from the funds deposited with the trustee.

The tender offer and the redemption are conditioned on completion of a contemporaneous notes offering, proceeds of which will be used to fund the purchase of notes under the tender offer, to redeem any notes that remain outstanding and to repay a portion of the outstanding balance on the company’s revolving credit facility, with any excess to be used for general partnership purposes.

The tender offer is not conditioned upon any minimum amount of notes being tendered.

BofA Securities, Inc. (888 292-0070 or debt_advisory@bofa.com) is the dealer manager for the tender offer.

Global Bondholder Services Corp. (855 654-2014 or, for banks and brokers, 212 430-3774; https://www.gbsc-usa.com/tallgrass/) is the tender agent and information agent.

Tallgrass is an energy infrastructure company based in Leawood, Kan.

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