Natural gas processor and distributor MarkWest Energy Partners L.P. MWE has announced the pricing of a public offering of senior notes worth $1.2 billion. The partnership has priced the 4.875% senior unsecured notes, due 2025, at 99.026% of par. The offering is likely to close on Jun 2, 2015.
MarkWest Energy stated that it expects proceeds of $1,175,068,000 from the offering, after deducting underwriter discounts, commissions and offer-related expenses. The proceeds would be utilized to settle payments for its pending tender offers.
Separately, the partnership has announced tender offers to purchase any and all of the following senior notes – the 6.75% senior notes due 2020, 6.5% senior notes due 2021 and 6.25% senior notes due 2022.
The partnership further added that in addition to the proceeds from the offering, cash available on hand and borrowings under its revolving credit facility would be used to settle the tender offer.
Any remaining proceeds from this senior notes offering would be used to purchase the remaining notes under the tender offer, if any, and for other general partnership purposes.
Denver, CO-based MarkWest Energy Partners is engaged in the gathering, processing and transmission of natural gas as well as the transportation, fractionation and storage of natural gas liquids. The partnership is also engaged in the gathering and transportation of crude oil. MarkWest Energy Partners is one of the largest processors of natural gas in the Appalachian region and has a significant presence in the other prolific natural gas producing basins of the U.S as well.
Currently, MarkWest Energy carries a Zacks Rank #3 (Hold).
Better-ranked players from the broader energy sector include Suncor Energy Inc. SU, Pembina Pipeline Corporation PBA and Transmontaigne Partners L.P. TLP. All these stocks sport a Zacks Rank #1 (Strong Buy).
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