Natural gas pipeline operator,
Spectra Energy Partners LP
) declared the pricing of senior notes worth $1.9 billion. The
notes will be issued in three parts of $500 million, $1.0 billion
and $400 million (principal amount).
The $500 million notes are priced at 99.829% of their face value,
are set to mature in 2018 and will carry an annual interest rate
of 2.95%. The $1.0 billion notes priced at 99.765% of their face
value will bear an interest rate of 4.75% and are scheduled to
mature in 2024. The remaining $400 million worth notes priced at
99.875% of their face value, are supposed to mature in 2043 and
carry an estimated interest rate of 5.95%. Spectra Energy expects
the offering to close by Sep 25, 2013.
Spectra Energy Partners will utilize the net proceeds from the
offerings to partly finance its acquisition of transmission,
storage and liquids properties of
Spectra Energy Corp
), a premier natural gas company.
Earlier on Aug 6, 2013, Spectra Energy Partners inked a deal with
Spectra Energy Corp. Per the contract, Spectra Energy Partners
will buy the remaining U.S. transmission and storage assets of
Spectra Energy Corp. The transaction is expected to close by the
fourth quarter of 2013.
Spectra Energy Partners possesses storage and transportation
properties of natural gas. The partnership is also the operator
of those assets.
Spectra Energy Partners currently holds a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can have a look at oil and gas production pipeline
Magellan Midstream Partners LP
Pioneer Southwest Energy Partners LP
) that offer value. Both Magellan Midstream Partners and Pioneer
Southwest Energy Partners sport a Zacks Rank #1 (Strong Buy).
MAGELLAN MDSTRM (MMP): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
SPECTRA ENERGY (SE): Free Stock Analysis
SPECTRA EGY PTR (SEP): Free Stock Analysis
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