Phillips 66 Partners LP priced an underwritten public offering of $650 million of unsecured senior notes consisting of $500 million of 3.75% senior notes due 2028 and $150 million of 4.68% senior notes due 2045.
The 2028 notes were priced at 99.620% of par while the 2045 notes were offered at 100.024% of par. The 2045 notes are being offered as additional notes under an indenture pursuant to which the partnership issued 4.68% senior notes due 2045 on Feb. 23, 2015, according to an Oct. 10 news release.
The net proceeds from the offering, which is scheduled to close Oct. 13, will be used for general partnership purposes and to pay down debt related to its acquisition of an indirect 25% stake in the Bakken Pipeline and 100% stake in Merey Sweeny LP from its parent company Phillips 66 Co.
Citigroup Global Markets Inc., MUFG Securities Americas Inc., Scotia Capital USA Inc. and TD Securities USA LLC are acting joint book-running managers while BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Mizuho Securities USA Inc. are acting passive book-runners for the offering.