Published on 8/11/2021 in the Prospect News High Yield Daily.
New Issue: Tallgrass Energy sells $500 million 10-year notes at par to yield 6%
By Paul A. Harris
Portland, Ore., Aug. 11 – Tallgrass Energy Partners LP and Tallgrass Energy Finance Corp. priced a $500 million issue of 10-year senior notes (B1/BB-/BB-) at par to yield 6% in a Wednesday drive-by, according to market sources.
The yield printed at the wide end of the 5¾% to 6% yield talk and in the middle of initial guidance in the 6% area.
MUFG was at the left of a syndicate of bookrunners that also included RBC Capital Markets LLC, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., ING Financial Markets LLC, CIBC World Markets Corp., J.P. Morgan Securities LLC and Mizuho Securities USA LLC.
The Leawood, Kan.-based energy and infrastructure company plans to use the proceeds plus borrowings under its senior secured revolver to fund the tender/redemption of its 5½% senior notes due 2024.
| Issuers: | Tallgrass Energy Partners, LP and Tallgrass Energy Finance Corp.
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| Amount: | $500 million
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| Maturity: | Sept. 1, 2031
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| Securities: | Senior notes
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| Bookrunners: | MUFG, RBC Capital Markets LLC, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc., ING Financial Markets LLC, CIBC World Markets Corp., J.P. Morgan Securities LLC and Mizuho Securities USA LLC
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| Co-manager: | Blackstone Securities Partners LP
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| First call: | Sept. 1, 2026 at 103
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| Trade date: | Aug. 11
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| Settlement date: | Aug. 18
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5¾% to 6%
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| Marketing: | Drive-by
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