Kinder Morgan Inc. sold $6 billion of notes Nov. 24 to help fund the estimated $44 billion consolidation of its oil-pipeline empire, propelling U.S. corporate-bond sales closer to a new annual record.
The largest portion of the five-part offering from billionaire Richard Kinder’s company was $1.75 billion of 5.55% bonds due June 2045, according to data compiled by Bloomberg. The securities were issued at a yield of 2.55% points above similar-maturity Treasuries.
Kinder Morgan’s offering pushed corporate bond sales to more than $1.48 trillion, just shy of the $1.49 trillion record set in 2013, Bloomberg data show.
The Houston-based company plans to use proceeds from the bond sale to help pay for its acquisition of Kinder Morgan Energy Partners LP and El Paso Pipeline Partners LP, according to a company filing today. The sale will also help repay some loan debt.
Kinder Morgan also sold $1.5 billion portions of 3.05% , five-year notes and 4.3% bonds due June 2025, Bloomberg data show. The company sold $750 million of 5.3%, 20-year securities and $500 million of 2%, three-year notes.
Standard & Poor’s, Fitch Ratings and Moody’s Investors Service upgraded Kinder Morgan’s credit ratings last week to the lowest rungs of investment-grade status.
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