NuStar Logistics’ $1.2 Billion Notes Offering

Sidley Austin LLP advised NuStar Energy L.P on the deal.

NuStar Logistics, L.P., a wholly owned operating subsidiary of NuStar Energy L.P. (NYSE: NS) (“NuStar Energy”), announced that it has priced $600.0 million aggregate principal amount of 5.750% senior notes due October 1, 2025 (the “2025 Notes”) and $600.0 million aggregate principal amount of 6.375% senior notes due October 1, 2030 (the “2030 Notes” and together with the 2025 Notes, the “Notes”). The Notes were priced at par. The settlement date for the offering is expected to be September 14, 2020, subject to customary closing conditions. The Notes will be fully and unconditionally guaranteed by NuStar Energy, as parent guarantor, and NuStar Pipeline Operating Partnership L.P., a wholly owned operating subsidiary of NuStar Energy, as affiliate guarantor. The net proceeds from the offering are expected to be used for the repayment of indebtedness, including (1) all borrowings outstanding under NuStar Logistics, L.P.’s term loan agreement and the related repayment premium and (2) a portion of borrowings outstanding under NuStar Logistics, L.P.’s revolving credit agreement. Amounts repaid under NuStar Logistics, L.P.’s revolving credit agreement may be reborrowed and used for the payment of $300 million aggregate principal amount of NuStar Logistics, L.P.’s 6.75% senior notes due 2021 at their maturity and for general partnership purposes.

Citigroup Global Markets Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Barclays Capital Inc., BBVA Securities Inc., BMO Capital Markets Corp., Mizuho Securities USA LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Truist Securities, Inc. and U.S. Bancorp Investments, Inc. are acting as book-running managers for the offering. Comerica Securities, Inc. is acting as co-manager for the offering.

NuStar Energy, a publicly traded master limited partnership based in San Antonio, is one of the largest independent liquids terminal and pipeline operators in the nation.

The Sidley team was led by George Vlahakos (Picture) and also included Kayleigh McNelis (Associate, Houston), Tanner Groce (Associate, Houston), Sabina Wahl (Associate, Houston), Angela Richards (Partner, Houston) and David Ni (Partner, New York).

Involved fees earner: Tanner Groce – Sidley Austin LLP; Kayleigh McNelis – Sidley Austin LLP; David Ni – Sidley Austin LLP; Angela Richards – Sidley Austin LLP; George Vlahakos – Sidley Austin LLP; Sabina Wahl – Sidley Austin LLP;

Law Firms: Sidley Austin LLP;

Clients: NuStar Logistics LP;

Author: Ambrogio Visconti