Phillips 66 (PSXP) To Pay Back Term Loan With Notes Offering
Zacks Investment Research | Sep 03, 2019 09:25PM ET
Phillips 66 Partners LP (NYSE:PSXP) recently announced the pricing of unsecured senior notes, carrying a total aggregate principal amount of $900 million. The master limited partnership anticipates the offering of the notes to close on Sep 6, 2019, awaiting customary closing conditions.
Of the total principal, the partnership has priced $600 million senior notes at 99.781% of par. The notes will likely mature by 2029 and is expected to carry an interest rate of 3.150%.
The remaining $300 million aggregate principal amount of senior notes is priced at 99.763% of par. Phillips 66 Partners, formed by Phillips 66 (NYSE:PSX) , added that the notes will mature on 2024 and will carry an interest rate of 2.450%.
Notably, the net proceeds from the unsecured senior notes’ public offering will be utilized by Phillips 66 Partners for general partnership purposes that include investing in upcoming organic growth projects and major acquisitions. A part of the total net proceeds will be allocated to repay senior unsecured term loan with $400 million principal amount and senior notes with $300 million principal – carrying an interest rate of 2.646% and set to mature on February 2020.
Headquartered in Houston, TX, Phillips 66 Partners owns midstream infrastructures that primarily include pipelines and terminals for transporting as well as storing crude oil, natural gas liquids and refined petroleum products.
Currently, the partnership carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include World Fuel Services Corporation (NYSE:INT) and Delek Logistics Partners LP (NYSE:DKL) . Both the stocks carry a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.