Boardwalk Pipeline Partners LP’s (NYSE:BWP) wholly owned subsidiary, Boardwalk Pipelines LP (Boardwalk), has priced a public offering of an additional $250 million aggregate principal amount of its 4.95% senior notes due Dec. 15, 2024.
Boardwalk originally offered and sold $350 million in aggregate principal amount of its 4.95% senior notes due 2024 on Nov. 26, 2014. Boardwalk expects the offering to close on March 13.
Boardwalk intends to use the net proceeds of approximately $247.1 million from this offering (after deducting the underwriting discount and estimated offering expenses) to retire a portion of the outstanding $250 million aggregate principal amount of Texas Gas' 4.60% notes due 2015. Initially, Boardwalk expects to use the net proceeds to reduce outstanding borrowings under its revolving credit facility. Subsequently, on or prior to June 1, Boardwalk expects to retire all of the outstanding $250 million aggregate principal amount of Texas Gas' 4.60% notes due 2015 with borrowings under its revolving credit facility.
Barclays, JP Morgan, Citigroup, Deutsche Bank Securities, MUFG, and Wells Fargo Securities are acting as joint book-running managers for the offering. BB&T Capital Markets, BBVA, Fifth Third Securities, Goldman, Sachs & Co., Mizuho Securities, Morgan Stanley, PNC Capital Markets LLC, RBC Capital Markets, and UBS Investment Bank are acting as co-managers for the offering.