Northern Tier Offers $275M in HY

Northern Tier Energy is on the bond market with a $275 million bond deal.

The Ridgefield, Conn.-based oil and gas provider plans to sell senior secured notes due 2020 and use the proceeds to finance a tender offer for all of its outstanding 10.5% senior secured notes due 2017.

As of Oct. 30, bondholders agreed to tender $253 million of the notes. There was approximately $290 million in the 2017 notes outstanding as of June30, according to an early September regulatory filing.

Bondholders will get $1,150 per $1,000 tendered by 5 p.m. Nov. 1, which includes a consent payment of $30 per $1,000. The early tender deadline was extended from Oct. 30 because of financial markets being affected by Hurricane Sandy. Bondholders who tender after Nov. 1 will receive $1,120 for each $1,000 tendered. The tender offer expires Nov. 14.

Goldman Sachs is the lead bookrunner on the bond offering. The bonds are expected to price by Nov. 5, according to KDP Investment Advisors.

Moody’s Investors Service rated the proposed bonds B1 and maintains B1 corporate family and probability of default ratings on the company. Standard & Poor’s holds a B+ corporate credit rating on Northern Tier.