U.S. Markets open in 1 hr 43 mins

Phillips 66 Partners Prices $900 Million Senior Notes Offering

HOUSTON--(BUSINESS WIRE)--

Phillips 66 Partners LP (PSXP) (the “Partnership”), today announced that it has priced $300 million aggregate principal amount of 2.450% unsecured senior notes due 2024 (the “2024 notes”) and $600 million aggregate principal amount of 3.150% unsecured senior notes due 2029 (the “2029 notes”) in an underwritten public offering pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the “SEC”). The 2024 notes were offered at a price to the public of 99.763% of par and the 2029 notes were offered at a price to the public of 99.781% of par.

The Partnership expects to use the net proceeds from this offering (i) to repay indebtedness outstanding under its $400 million senior unsecured term loan facility, (ii) to repay or redeem the $300 million of its outstanding 2.646% senior notes due February 2020, and (iii) for general partnership purposes, including funding future acquisitions and organic projects and the repayment of outstanding indebtedness. The closing of the senior notes offering is expected to occur on Sept. 6, 2019, subject to satisfaction of customary closing conditions.

Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and RBC Capital Markets, LLC are acting as the joint book-running managers for this offering, and BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Commerz Markets LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Wells Fargo Securities, LLC, BofA Securities, Inc. and J.P. Morgan Securities LLC are acting as the passive book-runners. A copy of the prospectus supplement and accompanying base prospectus relating to this offering may be obtained, when available, by sending a request to:

Barclays Capital Inc.

c/o Broadridge Financial Solutions

1155 Long Island Ave.

Edgewood, NY 11717

Telephone: (888) 603-5847

barclaysprospectus@broadridge.com

Citigroup Global Markets Inc.

c/o Broadridge Financial Solutions

1155 Long Island Ave.

Edgewood, NY 11717

Telephone: (800) 831-9146

prospectus@citi.com

 

Goldman Sachs & Co. LLC

Attention: Prospectus Department

200 West St.

New York, NY 10282

Telephone: (866) 471-2526

prospectus-ny@ny.email.gs.com

RBC Capital Markets, LLC

Attention: Prospectus Department

200 Vesey St., 8th Floor

New York, NY 10281

Telephone: (877) 822-4089

rbcnyfixedincomeprospectus@rbccm.com

These documents may also be obtained free of charge when they are available from the SEC’s website at www.sec.gov.

This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines, terminals and other midstream assets.

CAUTIONARY STATEMENTS

This news release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Phillips 66 Partners believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond Phillips 66 Partners’ control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what Phillips 66 Partners anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements include Phillips 66 Partners’ ability to successfully consummate the proposed transaction and other factors as described in the filings that Phillips 66 Partners makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and Phillips 66 Partners undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190903005943/en/