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SEP Prices Senior Notes

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Natural gas pipeline operator, Spectra Energy Partners LP (SEP - Free Report) 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 (SE - Free Report) , 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 MLPs like Magellan Midstream Partners LP (MMP - Free Report) and Pioneer Southwest Energy Partners LP that offer value. Both Magellan Midstream Partners and Pioneer Southwest Energy Partners sport a Zacks Rank #1 (Strong Buy).

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