FWP 1 a14-20292_3fwp.htm FWP

 

Filed Pursuant to Rule 433

Registration File No. 333-188071

September 8, 2014

 

KINDER MORGAN ENERGY PARTNERS, L.P.

Pricing Term Sheet

$650 Million 4.250% Senior Notes due 2024

$550 Million 5.400% Senior Notes due 2044

 

Issuer:

 

Kinder Morgan Energy Partners, L.P.

 

 

 

 

 

 

 

Ratings: (Moody’s / S&P / Fitch)*

 

Baa2 / BBB / BBB

 

 

 

 

 

 

 

Ratings Outlooks: (Moody’s / S&P / Fitch)

 

Negative Watch / Negative Watch / Negative Watch

 

 

 

 

 

Security Type:

 

Senior Unsecured Notes

 

 

 

 

 

 

 

Pricing Date:

 

September 8, 2014

 

 

 

 

 

 

 

Settlement Date (T+3):

 

September 11, 2014

 

 

 

 

 

 

 

 

 

4.250% Senior Notes due 2024

 

5.400% Senior Notes due 2044

 

 

 

 

 

Maturity Date:

 

September 1, 2024

 

September 1, 2044

 

 

 

 

 

Principal Amount:

 

$650,000,000

 

$550,000,000

 

 

 

 

 

Benchmark:

 

2.375% due August 15, 2024

 

3.375% due May 15, 2044

 

 

 

 

 

Benchmark Price / Yield:

 

99-05 / 2.471%

 

102-26 / 3.227%

 

 

 

 

 

Spread to Benchmark:

 

+ 180 bps

 

+ 220 bps

 

 

 

 

 

Yield to Maturity:

 

4.271%

 

5.427%

 

 

 

 

 

Coupon:

 

4.250%

 

5.400%

 

 

 

 

 

Public Offering Price:

 

99.832%

 

99.604%

 

 

 

 

 

Optional Redemption:

 

At any time prior to June 1, 2024, we may redeem some or all of the notes at a price equal to the sum of 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and a make-whole premium of T + 30 bps. On or after June 1, 2024, we may redeem some or all of the notes at a price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date.

 

At any time prior to March 1, 2044, we may redeem some or all of the notes at a price equal to the sum of 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date, and a make-whole premium of T + 35 bps. On or after March 1, 2044, we may redeem some or all of the notes at a price equal to 100% of the principal amount of the notes being redeemed plus accrued and unpaid interest to, but excluding, the redemption date.

 

 

 

 

 

Interest Payment Dates:

 

March 1 and September 1, commencing March 1, 2015

 

March 1 and September 1, commencing March 1, 2015

 

 

 

 

 

CUSIP / ISIN:

 

494550 BV7 / US494550BV76

 

494550 BW5 / US494550BW59

 

 

 

 

 

Joint Book-Running Managers:

 

Citigroup Global Markets Inc.

J.P. Morgan Securities LLC

 

 

 


 

 

 

Morgan Stanley & Co. LLC

Credit Suisse Securities (USA) LLC

DNB Markets, Inc.

Mizuho Securities USA Inc.

SunTrust Robinson Humphrey, Inc.

UBS Securities LLC

 

 

 

 

 

 

 

Co-Managers:

 

BBVA Securities Inc.

CIBC World Markets Corp.

ING Financial Markets LLC

Natixis Securities Americas LLC

Scotia Capital (USA) Inc.

 

 

 

*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

The issuer has filed a registration statement (including a preliminary prospectus supplement and a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the preliminary prospectus supplement for this offering, the issuer’s prospectus in that registration statement and any other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by searching the SEC online data base (EDGAR) on the SEC web site at http://www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus supplement and prospectus if you request it by calling Citigroup Global Markets Inc. at 1-800-831-9146, J.P. Morgan Securities LLC at 1-212-834-4533, Morgan Stanley & Co. LLC at 1-866-718-1649.