DCP Midstream, LP Announces Pricing of $400 Million of 3.25% Senior Notes due 2032

Rhea-AI Summary

DCP Midstream, LP (NYSE: DCP) announced a $400 million offering of 3.25% senior notes due 2032, priced at 100% of face value. Closing is expected on November 19, 2021, pending customary conditions. Proceeds will repay debt under the revolving credit facility and for general partnership purposes. The offering is managed by major financial institutions, and the senior notes are guaranteed by the Partnership. Investors are advised to review the prospectus for further details.

Positive

• Issuing $400 million in senior notes expected to bolster liquidity.
• Proceeds aimed at repaying existing debt, enhancing financial stability.

Negative

• Potential risks associated with market conditions affecting the offering.
• Uncertainties in achieving anticipated results as disclosed in forward-looking statements.

DENVER, Nov. 04, 2021 (GLOBE NEWSWIRE) -- DCP Midstream, LP (NYSE: DCP) (the “Partnership”) announced today that its wholly owned subsidiary, DCP Midstream Operating, LP (the “Operating Partnership”), priced an offering of $400 million aggregate principal amount of its 3.25% senior notes due 2032 at a price to the public of 100% of their face value (the “Senior Notes”). The Senior Notes will be fully and unconditionally guaranteed by the Partnership. The offering is expected to close on November 19, 2021, subject to the satisfaction of customary closing conditions.

The Operating Partnership intends to use the net proceeds from the offering to repay indebtedness under its revolving credit facility and for general partnership purposes.

J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Barclays Capital Inc., Citigroup Global Markets Inc., MUFG Securities Americas Inc. and TD Securities (USA) LLC are acting as joint book-running managers for the offering. PNC Capital Markets LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. are acting as co-managers for the offering.

The Senior Notes are being offered and will be sold pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission (the “SEC”). This offering is being made only by means of a base prospectus and related prospectus supplement.

Before you invest, you should read the prospectus supplement and accompanying base prospectus in the registration statement for more complete information about this offering. When available, copies of these documents may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 1-866-803-9204.

You may also obtain these documents free of charge by visiting the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

DCP Midstream, LP (NYSE: DCP) is a Fortune 500 midstream master limited partnership headquartered in Denver, Colorado, with a diversified portfolio of gathering, processing, logistics and marketing assets. DCP is one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. The owner of DCP’s general partner is a joint venture between Enbridge and Phillips 66.

This press release includes forward-looking statements as defined under the federal securities laws, including statements regarding the intended use of offering proceeds and other aspects of the senior notes offering. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the control of the Partnership or the Operating Partnership, including market conditions, customary offering closing conditions and other factors described in the base prospectus and accompanying prospectus supplement for the senior notes offering. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the actual results of the Partnership or the Operating Partnership may vary materially from what management anticipated, estimated, projected or expected.

Investors are encouraged to closely consider the disclosures and risk factors contained in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission and in the base prospectus and accompanying prospectus supplement for the senior notes offering. The statements herein speak only as of the date of this press release. The Partnership and Operating Partnership undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

DCP Midstream Investor Relations:

Mike Fullman
(303) 605-1628
Source: DCP Midstream, LP

FAQ

What is the purpose of DCP's $400 million senior notes offering?

The proceeds will be used to repay indebtedness under its revolving credit facility and for general partnership purposes.

When is the expected closing date for DCP's senior notes offering?

The expected closing date is November 19, 2021, subject to customary closing conditions.

What interest rate will DCP's senior notes carry?

DCP's senior notes will carry a 3.25% interest rate.

Who is managing the senior notes offering for DCP?

The offering is managed by J.P. Morgan Securities, Mizuho Securities, RBC Capital Markets, and others.

What are the risks associated with DCP's senior notes offering?

Risks include market conditions and uncertainties that could affect the anticipated results of the Partnership.