Magellan Midstream Partners LP (NYSE: MMP) has priced $500 million of its 4.25% senior notes due 2046. The notes were priced at 98.762% of par to yield 4.324% to maturity. The partnership intends to use the net proceeds from the offering of approximately $488.7 million, after deducting underwriting discounts and estimated offering expenses, to repay its 5.65% senior notes when due in Oct. 2016 and to repay borrowings outstanding under its commercial paper program. Any remaining proceeds may be used for general partnership purposes, which may include capital expenditures.
The offering is expected to close on Sept. 13, 2016 and is subject to customary closing conditions. J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC are joint book-running managers for the debt offering, with Barclays Capital Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey Inc., US Bancorp Investments Inc. and Wells Fargo Securities LLC acting as co-managers.