Genesis Energy driving by with $550 million six-year senior notes; initial guidance 8¾% area

By Paul A. Harris

Portland, Ore., Dec. 10 – Genesis Energy, LP and Genesis Energy Finance Corp. plan to price a $550 million public offering of senior notes due January 2027 (B1/B+) in a Thursday drive-by trailing a late morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the 8¾% area, according to a bond trader, who added that the full amount of the deal has been spoken for in reverse inquiry.

Left lead bookrunner RBC Capital Markets LLC will bill and deliver. Wells Fargo Securities LLC, SMBC Nikko Securities America Inc., BofA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Capital One Securities Inc., Scotia Capital (USA) Inc., BBVA Securities Inc., Fifth Third Securities Inc. and Regions Securities LLC are the joint bookrunners. Raymond James & Associates Inc. is the co-manager.

The six-year notes come with three years of call protection.

The Houston-based midstream energy master limited partnership plans to use the proceeds to repay its outstanding senior notes due 2023, to pay down its revolving credit facility and for general corporate purposes.

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