Ruby Pipeline Plans Offering of Unsecured Notes: New Issue Alert
Ruby Pipeline LLC, a joint venture of El Paso Corp. (EP) and Global Infrastructure Partners, is among issuers planning to sell at least $4.78 billion of bonds in the U.S., according to data compiled by Bloomberg.
Companies sold $1.45 billion of bonds yesterday, the data show. They have issued $978.1 billion of bonds this year, compared with $972.6 billion in the similar period of 2010.
Following is a description of pending sales of corporate and other bonds.
UNION NATIONAL BANK PJSC, the lender majority-owned by Abu Dhabi Investment Council, may sell 5-year notes in a benchmark offering, according to a person familiar with the transaction who declined to be identified because terms aren’t set. The notes may yield about 287.5 basis points over the mid-swaps rate, the person said.
RUBY PIPELINE LLC, a joint venture owned by El Paso Corp. and Global Infrastructure Partners, plans to issue $1.075 billion of senior unsecured notes, according to a person with knowledge of the transaction. Proceeds will be used to repay the company’s project finance loan, said the person, who declined to be identified because terms aren’t set. Moody’s Investors Service rated the debt Baa3.
BANCO DE BOGOTA SA, the unit of Grupo Aval Acciones & Valores, plans to sell $1 billion of 10-year senior unsecured notes denominated in U.S. dollars, Moody’s Investors Service said on Sept. 22. Moody’s said that it would rate the proposed notes Baa2.
TRITON CONTAINER INTERNATIONAL LTD, the world’s largest owner-lessor of marine intermodal cargo containers, plans to sell $180 million of senior notes, according to a statement distributed by Standard & Poor’s. S&P assigned a BBB issue-level rating to the notes from the San Francisco-based company, which leases dry van, open top and flat rack containers.
UNION BANK OF INDIA LTD., the Mumbai-based lender that went public in 2002, hired banks to help it arrange a series of credit investor meetings in Asia and Europe, according to a person with knowledge of the transaction. The bank may consider a sale of dollar bonds thereafter subject to market conditions, the person said, asking not to be identified as details are private. Bank of America Corp., Barclays Plc, Citigroup Inc., HSBC Holdings Plc, Deutsche Bank AG and Standard Chartered Plc are helping to arrange the meetings, the person said. The bank is rated Ba1 by Moody’s and BBB- by S&P.
HEALTH MANAGEMENT ASSOCIATES INC. (HMA), the owner and operator of 66 for-profit hospitals, plans to sell $1 billion of senior unsecured notes, it said in a statement distributed by Business Wire. The Naples, Florida-based company is also seeking $2.7 billion in loans, according to the statement. Moody’s ranks the notes B3 and S&P grades them an equivalent B-.
(Added Nov. 3. See HMA US .)
AMERIGROUP CORP., a provider of Medicaid managed-care plans, plans to sell $450 million of bonds due in 2019, the company said in a statement distributed by PR Newswire. Goldman Sachs Group Inc. is underwriting the offering, Amerigroup said. S&P said it would rate the notes BB+.
RIVER ROCK ENTERTAINMENT AUTHORITY, an American Indian casino operator, plans to sell $205 million of senior notes due in 2018, it said in a statement. S&P assigned a grade of B- to the notes, which will be used to refinance debt, the rater said in a statement.
MANNKIND CORP., the biotechnology company founded by billionaire investor Alfred Mann, plans to raise $370 million by selling senior secured discount notes due 2017, the Valencia, California-based firm said in a Sept. 23 statement distributed by Business Wire. The notes may yield 12 percent with 3 percent warrants, according to a person familiar with the offering who declined to be identified as terms aren’t set.
EMPRESA DE ENERGIA DE BOGOTA SA, Colombia’s second-biggest electricity transporter, hired Deutsche Bank AG and Banco Santander SA to sell bonds overseas, according to a person familiar with the offering. Bogota-based EEB, as the utility is known, may seek to sell bonds that mature in 10 years, said the person who declined to be identified because terms aren’t set.
Offerings in Pipeline
MASISA SA, the Chilean forestry and wood panel company, plans to raise between $200 million and $260 million to refinance debt, according to Chief Financial Officer Eugenio Arteaga. The company is talking with banks to place bonds in either the U.S. or Europe, Arteaga said in an interview.
UNITED TECHNOLOGIES CORP. (UTX), the maker of Pratt & Whitney jet engines, may raise $12 billion of debt to help finance its $16.5 billion acquisition of Goodrich Corp., Chief Financial Officer Greg Hayes told analysts on a conference call on Sept. 22. Most of the debt will mature within five years, he said.
ENTERGY LOUISIANA LLC, the unit of the New Orleans-based power company, plans to sell about $206 million of bonds, according to a company statement. The offering was delayed and reauthorized after the utility violated regulations by publicizing the sale in the wrong newspapers, the Associated Press said on Aug. 11.
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