Buckeye Partners LP priced an offering of $600 million aggregate principal amount of senior unsecured notes, including $300 million 4.35% senior notes due 2024 and $300 million 5.60% senior notes due 2044 at 99.825% and 99.876% of par, respectively. Buckeye plans to close the offering on Sept. 12, subject to customary closing conditions. Buckeye expects to receive net proceeds, after the underwriting discount and connected offering expenses, of about $598.4 million.
Buckeye plans use the net proceeds to fund part of the purchase price of the previously announced transaction with Trafigura Corpus Christi Holdings Inc., to fund the redemption of all $275 million aggregate principal amount of its outstanding 5.3% notes due Oct. 15, 2014, and for general partnership purposes.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Barclays Capital Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are acting as joint book-running managers of the senior unsecured notes offering. BB&T Capital Markets, a division of BB&T Securities LLC, PNC Capital Markets LLC, SMBC Nikko Securities America Inc. and UBS Securities LLC are acting as co-managers of the offering.
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