New Issue: Inergy prices $600 million eight-year senior notes at par to yield 7%

By Paul A. Harris

St. Louis, Sept. 13 - Inergy, LP and Inergy Finance Corp. priced a $600 million issue of eight-year senior notes (Ba3/B+/) at par to yield 7% on Monday, according to an informed source.

The yield printed at the tight end of the 7% to 7¼% price talk.

Wells Fargo Securities, Barclays Capital Inc., J.P. Morgan Securities Inc., Bank of America Merrill Lynch and Credit Suisse Securities were the joint bookrunners for the quick-to-market issue.

Co-managers were Citigroup Global Markets Inc., Morgan Stanley & Co. Inc. and SunTrust Robinson Humphrey Inc.

The Kansas City, Mo.-based energy infrastructure and distribution company will use the proceeds to fund a portion of the Tres Palacios Gas Storage LLC acquisition.

Issuers:	Inergy, LP and Inergy Finance Corp.
Amount:	$600 million
Maturity:	Oct. 1, 2018
Securities:	Senior notes
Bookrunners:	Wells Fargo Securities, Barclays Capital Inc., J.P. Morgan Securities Inc., Bank of America Merrill Lynch, Credit Suisse Securities
Co-managers:	Citigroup Global Markets Inc., Morgan Stanley & Co. Inc., SunTrust Robinson Humphrey Inc.
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	465 bps
Call features:	Callable on Oct. 1, 2014 at 103.50, 101.75, par on and after Oct. 1, 2016
Equity clawback:	35% at 107.0 until Oct. 1, 2013
Trade date:	Sept. 13
Settlement date:	Sept. 27
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7% to 7¼%
Marketing:	Quick to market

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