By Cristal Cody
Tupelo, Miss., Nov. 27 – NuStar Energy LP priced $150 million of $25-par 9% series C fixed-to-floating rate cumulative redeemable perpetual preferred units (Ba3/B/B+) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company sold 6 million units in the offering.
The deal includes an over-allotment option of an additional $22.5 million, or 900,000 units.
The issue has a fixed rate until Dec. 15, 2022, after which the rate will convert to a floating rate of Libor plus 688 basis points.
Wells Fargo Securities LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.
The units have a liquidation preference of $25.00 plus accumulated and unpaid distributions.
Proceeds will be used for general partnership purposes, including capital expenditures and repaying debt under NuStar’s revolving credit agreement.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “NSPrC.”
NuStar is a San Antonio-based limited partnership and independent liquids terminal and pipeline operator.
| Issuer: | NuStar Energy LP
|
| Amount: | $150 million, or 6 million units
|
| Greenshoe: | $22.5 million, or 900,000 units
|
| Description: | Fixed-to-floating rate cumulative redeemable preferred units
|
| Maturity: | Perpetual
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Co-managers: | B. Riley FBR, Inc., Citigroup Global Markets Inc., Barclays, U.S. Bancorp Investments, Inc., SMBC Nikko Securities America, Inc., DNB Markets, Inc., TD Securities (USA) LLC and BB&T Capital Markets
|
| Dividend: | 9%; fixed rate until Dec. 15, 2022, then converts to floating rate of Libor plus 688 bps
|
| Price: | $25.00 per unit
|
| Call features: | On or after Dec. 15, 2022 at $25.00 per unit plus accumulated and unpaid distributions
|
| Trade date: | Nov. 27
|
| Settlement date: | Nov. 30
|
| Ratings: | Moody’s: Ba3
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | SEC registered
|
| Expected listing: | NYSE: NSPrC
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
