ArcLight NGPL talks $400 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, March 31 – ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) launched on Wednesday its $400 million seven-year senior secured term loan (Ba3/B+) with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first priority lien on all of the membership interests issued by the borrower, and all existing and future membership interests of the company owned by the borrower and all other assets of the borrower.

Barclays, Goldman Sachs Bank USA, MUFG and Natixis are the bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at noon ET on April 9.

Proceeds will be used to support the $830 million acquisition by an affiliate of ArcLight Capital Partners of a 25% stake in NGPL Holdings LLC, which indirectly owns 100% of Natural Gas Pipeline Co. of America LLC. The stake is being bought from Kinder Morgan Inc. and Brookfield Infrastructure Partners LP.

NGPL is a FERC-regulated natural gas pipeline system.

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