Buckeye Partners LP (NYSE: BPL) announced Jan. 18 that it has priced an offering of $400 million aggregate principal amount of 6.375% junior subordinated notes due 2078 at 99.474% of par. The notes will bear interest at a fixed rate of 6.375% per year from the date they are issued up to, but not including, Jan. 22, 2023 or an earlier redemption date. The notes will bear interest from, and including, Jan. 22, 2023 up to, but not including, the maturity date at a floating rate based on the Three-Month LIBOR Rate plus 402 basis points, reset quarterly.
Buckeye expects the offering to close on Jan. 22, 2018, subject to the satisfaction of customary closing conditions. Buckeye expects to receive net proceeds after deducting the underwriting discount and offering expenses in connection with the offering of approximately $394.9 million. Buckeye intends to use the net proceeds from this offering in addition to the net proceeds of the offering of 4.125% senior notes due 2027 (i) to repay borrowings under its revolving credit facility and (ii) for general partnership purposes, which may include, among other things, repayment of indebtedness, acquisitions, capital expenditures and additions to working capital.
Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are acting as joint book-running managers of the junior subordinated notes offering.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus supplement and accompanying base prospectus.
Copies of the prospectus supplement and accompanying base prospectus related to this offering may be obtained from: Deutsche Bank Securities Inc., 60 Wall Street, New York, NY 10005-2836 , Attn: Prospectus Group, by email at prospectus.cpdg@db.com , or by telephone at (800) 503-4611 or Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, by email at wfscustomerservice@wellsfargo.com, or by telephone at (800) 645-3751. You may also obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov.
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