Brookfield NGPL lifts term loan to $485 million, trims pricing

By Sara Rosenberg

New York, Dec. 5 – Brookfield NGPL (BIP PipeCo Holdings LLC) upsized its seven-year senior secured term loan to $485 million from $465 million and reduced pricing to SOFR plus 325 basis points from SOFR plus 350 bps, according to a market source.

Additionally, the original issue discount on the term loan was tightened to 99.5 from talk in the range of 98.5 to 99, the source said.

The term loan still has a 0% floor, 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 NGPL Holdings LLC owned by the borrower and all other assets of the borrower, including without limitation general intangibles, hedging agreements, deposit and securities accounts, including the debt service reserve account and the available cash account and intercompany promissory notes payable by Midco LLC (a wholly owned subsidiary of the company) to the borrower in the amount of $250 million.

Barclays, RBC Capital Markets, CIBC and Santander are the bookrunners on the deal. Barclays is the administrative agent.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to pay a distribution to Brookfield and pay transaction costs.

Brookfield NGPL is a FERC-regulated natural gas pipeline system.

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