DCP Midstream, LP Announces Public Offering of $400 Million of Senior Notes due 2032

Rhea-AI Summary

DCP Midstream, LP (NYSE: DCP) has announced a public offering of $400 million in senior notes due 2032, guaranteed by the Partnership. The proceeds will be used to repay debts under its revolving credit facility and for general partnership purposes. The offering is managed by notable financial institutions, including J.P. Morgan and Barclays. This senior notes offering is part of an effective shelf registration with the SEC. Investors should consider risks highlighted in the prospectus related to market conditions and forward-looking statements.

Positive

• Intended use of proceeds includes repayment of debt, enhancing financial stability.
• Strong backing from notable financial institutions for the offering.

Negative

• Issuing new debt could lead to potential dilution of shareholder value.
• Market conditions may affect the success of the offering.

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”), has commenced a public offering of $400 million aggregate principal amount of its senior notes due 2032 (the “Senior Notes”). The Senior Notes will be fully and unconditionally guaranteed by the Partnership.

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 preliminary 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 amount and purpose of DCP's recent public offering?

DCP Midstream is offering $400 million in senior notes due 2032, intended for debt repayment and general partnership purposes.

Who is managing the senior notes offering for DCP Midstream?

The offering is managed by J.P. Morgan, Barclays, and other notable financial institutions.

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

The offering is subject to market conditions and risks outlined in the prospectus, which could affect its success.

When will DCP Midstream's senior notes mature?

The senior notes are due in 2032.