By Marisa Wong and Cristal Cody
Los Angeles, Aug. 3 – Columbia Pipeline Holding Co. LLC subsidiary Columbia Pipeline Operating Co. LLC priced $4.6 billion of notes (Baa1//BBB+) in five tranches on Wednesday, according to a market source.
The company priced $750 million of 5.927% notes due Aug. 15, 2030 with a spread of 175 basis points to Treasuries. Initial price talk was in the Treasuries plus 210 bps area.
A $1.5 billion tranche of 6.036% notes due Nov. 15, 2033 priced at Treasuries plus 195 bps. Initial price talk was in the Treasuries plus 225 bps area.
A $600 million tranche of 6.497% notes due Aug. 15, 2043 priced at Treasuries plus 212.5 bps. Initial price talk was in the Treasuries plus 250 bps area.
The company priced $1.25 billion of 6.544% notes due Nov. 15, 2053 at Treasuries plus 235 bps. Initial price talk was in the Treasuries plus 270 bps area.
Finally, a $500 million tranche of 6.714% notes due Aug. 15, 2063 priced at Treasuries plus 252 bps. Initial price talk was in the Treasuries plus 290 bps area.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and TD Securities (USA) LLC are bookrunners for the Rule 144A and Regulation S offering.
Columbia Pipeline is owned by TC Energy Corp., a Calgary, Alta.-based natural gas company that develops and operates energy infrastructure in Canada, the United States and Mexico.
| Issuer: | Columbia Pipeline Operating Co. LLC
|
| Amount: | $4.6 billion
|
| Issue: | Notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and TD Securities (USA) LLC
|
| Pricing date: | Aug. 2
|
| Ratings: | Moody’s: Baa1
|
| Fitch: BBB+
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2030 notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 15, 2030
|
| Coupon: | 5.927%
|
| Spread: | Treasuries plus 175 bps
|
| Initial price talk: | Treasuries plus 210 bps area
|
|
|
| 2033 notes
|
| Amount: | $1.5 billion
|
| Maturity: | Nov. 15, 2033
|
| Coupon: | 6.036%
|
| Spread: | Treasuries plus 195 bps
|
| Initial price talk: | Treasuries plus 225 bps area
|
|
|
| 2043 notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 15, 2043
|
| Coupon: | 6.497%
|
| Spread: | Treasuries plus 212.5 bps
|
| Initial price talk: | Treasuries plus 250 bps area
|
|
|
| 2053 notes
|
| Amount: | $1.25 billion
|
| Maturity: | Nov. 15, 2053
|
| Coupon: | 6.544%
|
| Spread: | Treasuries plus 235 bps
|
| Initial price talk: | Treasuries plus 270 bps area
|
|
|
| 2063 notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2063
|
| Coupon: | 6.714%
|
| Spread: | Treasuries plus 252 bps
|
| Initial price talk: | Treasuries plus 290 bps area
|
|
|
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