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Northern Tier secured notes price at par to yield 7.125%; terms


Northern Tier Energy
 today completed an offering of secured notes via bookrunners Goldman Sachs, Deutsche Bank, and J.P. Morgan, according to sources. Pricing came at the tight end of talk, and initial indications point to a rise of over 1.5 points on the break, sources note. The deal backs a tender offer for the $261 million left outstanding of the company’s 10.5% secured notes due 2017. Northern Tier used proceeds from its IPO in July to redeem $29 million of the notes, which originally totaled $290 million when they were issued in November 2010, via a special call option for 10% of the issue at 103% of par. Northern Tier was formed to hold the majority of Marathon Oil’s Minnesota downstream assets, which were acquired by ACON Investments and TPG Capital. Terms:

 

Issuer Northern Tier Energy
Ratings BB-/B1
Amount $275 million
Issue secured notes (144A)
Coupon 7.125%
Price 100
Yield 7.125%
Spread T+576
Maturity Nov. 15, 2020
Call nc3; 1st call @ par +75% of coupon
Trade Nov. 2, 0212
Settle Nov. 8, 2012 (T+4)
Books GS/DB/JPM
Jt Leads
Co’s.
Px talk 7.25% area
Notes w/ three-year equity clawback for 35% @ 107.125.

 

 

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