Chesapeake Midstream Prices $750 Million Notes At 6.125% Yield -Source

Chesapeake Midstream Partners L.P. (CHKM) sold $750 million of new 10-year notes Friday, pricing them at a risk premium of 4.18 percentage points over comparable government debt for a yield of 6.125%, according to a person familiar with the sale.

The sale, via funding arm CHKM Finance Corp., was increased by $150 million from a planned $600 million deal.

The senior unsecured notes come due for repayment on July 15, 2022 and were rated Ba3 by Moody's Investors Service and BB-plus by Standard & Poor's.

The notes can't be bought back by the natural-gas provider for the first five years of their life, and at their first call date can be redeemed at par, or 100 cents on the dollar, plus half of their 6.125% coupon--in other words, 103.063 cents on the dollar.

Proceeds will be used to repay borrowings under the company's revolver and for general partnership purposes, according to a company press release.

Barclays Capital, Credit Suisse, Royal Bank of Scotland and Wells Fargo Securities ran the deal.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; [e-mail]