Tallgrass Energy talks $400 million 5.5-year secured notes to yield 9%-9¼%; pricing Thursday

By Paul A. Harris

Portland, Ore., Feb. 22 – Tallgrass Energy Partners, LP talked its $400 million offering of Prairie Acquiror LP senior secured notes due Aug. 1, 2029 (B3/B) to yield 9% to 9¼%, according to market sources.

Official talk comes inside of the 9¼% to 9½% initial guidance.

Pricing is expected Thursday afternoon.

The Rule 144A and Regulation S 5.5-year notes come with two years of call protection.

J.P. Morgan Securities LLC is the lead.

The Leawood, Kan.-based energy infrastructure company plans to use the proceeds plus its amended and restated term loan to refinance all or a portion of its existing term loan, with the remainder of proceeds to be used for general partnership purposes.

Prairie Acquiror, directly or indirectly, owns 100% of the ownership interests in Tallgrass Energy Partners.

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