| C/P | Industry | Status | Ticker(s) | Issuer(s) | Size(m) | Tranches | Region | Date | |
|---|---|---|---|---|---|---|---|---|---|
IGC | ENGY | PRCD | ADGLXY | Galaxy Pipeline Assets BidCo Ltd | $3,920 | 2 | EMEA | Feb 9, 2021 |
[GALAXY PIPELINE BOOSTS VOLUME]
Galaxy Pipeline Assets BidCo Ltd “ADGLXY” (Aa2/NR/AA) hit the market today with $3.925bn 144A/Reg S 2-part fully amortizing sr secured notes. Governing Law: English Law with security documents governed by Abu Dhabi Law or Jersey Law. Listing: Global Exchange Market of the Irish Stock Exchange plc, trading as Euronext Dublin. UOP: refinance, in whole or in part, existing bank financing, termination of hedging agreements and transaction costs. Settle 2/18.
BIZ: The Issuer, which is owned by a consortium of global infrastructure investors (GIP, Brookfield, GIC, NH I&S, OTPP) and a leading European gas infrastructure owner and operator (SNAM), holds a 47.7% stake in ADNOC Gas Pipeline Assets LLC (the “AssetCo”). Abu Dhabi National Oil Company (“ADNOC”), a leading diversified energy and petrochemicals group and wholly owned entity of the Emirate of Abu Dhabi, controls 51% of the shares in AssetCo through its 80% owned subsidiary ADNOC Gas Pipelines HoldCo LLC.
AssetCo holds, for a period of 20 years, lease rights over ADNOC’s critical network of sales gas and Natural Gas Liquid pipelines, representing an important asset for the Emirate of Abu Dhabi providing gas shipment for its gas production to service its gas demand. The pipelines are solely operated by ADNOC.
VIA
Citi/HSBC/Miz (JGC)/First Abu Dhabi/Santander/SMBC Nikko/SG (JBRs).
Joint Lead Managers: ADCB, BNP, CACIB, ENBD, Natixis, MUFG, Samba and Standard Chartered Bank.
Co-Lead Managers: Caixabank, DBS.
Announced overnight with benchmark size (following investor calls on Monday) the deal was split into two tranches with price progression as follows:
- Tranche D: US$ benchmark 12.5-13.5 Years (Final/Legal Maturity) / 6.5-7.5 Years (Weighted Average Life).
IPTs: CT7+155 area (indic ~2.38% area).
GDNC: CT7+140a +/- 5
COUPON SET 2.16% (will price at par)
LAUNCH/SIZE SET: $1.75bn
PXD: $1.75bn 2.16% 3/31/34 100.00 2.16% T+133.8bp.
- Tranche E: US$ benchmark 19-19.75 Years (Final/Legal Maturity) / 12.5-13.5 Years (Weighted Average Life).
IPTs: CT10+200 area (indic ~3.16% area).
GDNC: 185a +/- 5
COUPON SET: 2.94% (will price at par)
LAUNCH/SIZE SET: $2.17bn
PXD: $2.17bn 2.94% 9/30/40 100.00 2.94% T+178bp.
As for r/v, ADGLXY priced a $4bn 3-part in October last year (the A, B and C tranches).
The main focus for today’s deal was Tranche B – the $1.55bn ADGLXY 2.625% due 03/31/36 which were quoted T+125bp vs 10yr UST ($102.22; 2.41% implied yield) for what is now an 11.2yr avg life.
Working from this bond, we heard f/v on today’s deal was pegged at:
F/V on Tranche D (7.3 a/l) T+110bp vs CT7 (a yield of around 1.82%). At the T+133.8bp pricing level, TRANCHE D CONCESSION IS 23.8BP.
F/V on Tranche E (12.5yr a/l) T+140bp vs CT10 (a yield of around 2.565). At the T+178bp pricing level, TRANCHE E CONCESSION IS 28BP.
Structure and size likely required some premium.
Final book size was heard as:
$1.75bn tranche D - $3.75bn
$2.17bn tranche E 0 $3.95bn.