Magellan Midstream Partners LP (NYSE: MMP) announced Feb. 25 it has priced its offering of $500 million senior notes

The offering consists of:

  • $250 million of its 3.2% notes due 2025 priced at 99.871% of par to yield 3.215% to maturity; and
  • $250 million of its 4.2% notes due 2045, priced at 99.965% of par to yield 4.202% to maturity.

Net proceeds are expected to be $495.3 million, after deducting underwriting discounts and estimated offering expenses.

Proceeds will be used for general partnership purposes and to repay borrowings outstanding under its revolving credit facility, if any, and its commercial paper program.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBC Capital Markets LLC and SunTrust Robinson Humphrey Inc. are joint book-running managers. Barclays Capital Inc., Mitsubishi UFJ Securities (USA) Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, SMBC Nikko Securities America Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are co-managers.

The offering is expected to close on March 4, and is subject to customary closing conditions.