The notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries, and by a pledge of all of the equity interests in CCH.
Underwriters received a month-long option to purchase 562,500 additional units. The offering is scheduled to close on May 20. Barclays is the sole book-running manager.
Hedge funds such as David Tepper's Appaloosa Management and Daniel Loeb's Third Point showed bullish moves toward the sector, while Warren Buffett's Berkshire Hathaway also appeared sanguine on the sector.
Core profit or clean EBITDA, stripping out inventory-holding losses, came in at 169 million euros (US$193.03 million), down from 205 million in the same period last year, Reuters reported.
Is the state of the midstream energy sector as positive as claimed or as negative as feared? Our first ranking of leading publicly owned companies confirms the relative strength of its players in comparison to counterparts in the upstream.
CCH will use the net proceeds to prepay a portion of the principal amounts currently outstanding under its credit facilities and to pay fees and expenses related to this offering.
Wells Fargo has been one of the most aggressive large banks in providing equity and second lien financing to small E&Ps in the sector.
The change in criticized status comes as JPMorgan and other banks have added to reserves for possible loan losses because of the impact on sharply lower oil revenue on the ability of borrowers in the shale oil industry to repay their debts.
Sage Midstream will provide transportation, processing, fractionation, storage and marketing services for natural gas, NGL, crude oil, petrochemicals and refined products.
Unregistered 2.45% notes due 2018, 3.30% notes due 2020, 4.50% notes due 2025 and 5.80% notes due 2045 will be exchanged for the same amount of registered notes.
Porter said he expects to see more consolidation in the oil sector. "You will see increased energy M&A and I think you're going to see increased issuance throughout the sector," he said.
Spectra also priced 14 million common shares at $30 each, for expected proceeds of about $420 million; these proceeds will finance this private placement transaction.