Tulsa, OK-based publicly traded energy pipeline partnership
Magellan Midstream Partners LP
) reported the pricing of senior notes worth $300 million. The
notes, carrying an interest rate of 5.15%, are expected to mature
by Oct. 15, 2043. The partnership expects the offering to
complete on Oct. 10, 2013.
Magellan Midstream added that the notes will likely be priced at
99.56% of their face value and is expected to have a yield to
maturity of 5.179%. The net proceeds - of roughly $295.6 million
- from the notes offerings will be utilized for repaying debt
under the revolving credit facility and for normal partnership
activities. Magellan Midstream might also invest the proceeds in
some securities that bear interest.
Magellan Midstream is a master limited partnership (MLP) that
owns and operates a diversified portfolio of energy
infrastructure assets. The partnership primarily transports,
stores, and distributes refined petroleum products and, to a
lesser extent, ammonia. Magellan conducts its operations in three
segments: Refined Products, Crude Oil and Marine Storage.
Magellan Midstream owns an attractive portfolio of energy
infrastructure assets that generate stable and recurring fee- and
tariff-based revenues. This includes the longest U.S. refined
petroleum products pipeline system, access to more than 40% of
the refining capacity in continental U.S. along with imports, and
many petroleum terminals with more than 80 million barrels of
Magellan Midstream currently retains a Zacks Rank #2 (Buy),
implying that it is expected to outperform the broader U.S.
equity market over the next one to three months.
Apart from Magellan Midstream, one can look at other oil and gas
pipeline MLPs like
Energy Transfer Partners LP
Kinder Morgan Energy Partners LP
Pioneer Southwest Energy Partners LP
) that offer value. All the partnerships sport a Zacks Rank #2
ENERGY TRAN PTR (ETP): Free Stock Analysis
KINDER MORG ENG (KMP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
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