BreitBurn Energy Partners LP (NASDAQ:BBEP) has priced an offering of an additional $400 million aggregate principal amount of its 7.875% senior notes due 2022. The offering was upsized to $400 million from the previously announced amount of $300 million.
The notes have been added to the Partnership’s existing $450 million in aggregate principal amount of 7.875% senior notes due 2022. The additional notes will have identical terms, other than the issue date and initial interest payment date, and will constitute part of the same series as and be fungible with the existing notes. The additional notes will be issued at a price equal to 100.250% of the principal amount thereof, resulting in a yield to worst of 7.823%.
The Partnership intends to use the net proceeds from the offering of $393.4 million, after expenses, to repay indebtedness outstanding under its bank credit facility. The company expects to close the sale of the additional notes on Nov. 22.
Wells Fargo Securities LLC, Barclays Capital Inc., BMO Capital Markets Corp., JP Morgan Securities LLC, and Mitsubishi UFJ Securities (USA) Inc. will act as joint book-running managers of the additional notes offering.