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MarkWest Energy Partners Closes $150 Million Private Placement of 6.875 Percent Senior Notes Due 2014

Posted by Dana in May 29th 2009

MarkWest Energy Partners, L.P. (NYSE:MWE) and its subsidiary MarkWest Energy Finance Corporation announced today the closing of $150 million of 6.875 percent senior unsecured notes due 2014 at an issue price to yield 12.59 percent to maturity.

The Partnership intends to use the net proceeds of this offering to repay borrowings under its revolving credit facility and ultimately to fund a portion of its 2009 capital program.

Although the terms of the notes are substantially the same as the terms of the Partnership’s outstanding 6.875 percent senior notes due 2014, the notes will be issued under a different indenture and will not be part of the same series.

“We are very pleased to complete a senior notes offering that significantly strengthens our liquidity position,” commented Frank Semple, Chairman, President and Chief Executive Officer. “We have executed a number of transactions this year to manage our balance sheet and maintain a comfortable cushion around our bank covenants. Combined with the increase to our revolving credit facility and the two strategic joint ventures we announced, this senior notes offering puts us in a strong position to continue to support our producer customers while providing adequate liquidity for the partnership through the end of 2010.”