Veresen Midstream talks $300 million term loan B at 98.5-98.75 OID

By Sara Rosenberg

New York, Aug. 10 – Veresen Midstream is shopping its $300 million term loan B (Ba3) due March 31, 2022 with an original issue discount of 98.5 to 98.75, according to a market source.

The term loan B is priced at Libor plus 425 basis points with a 1% Libor floor and includes 101 soft call protection for six months, the source said.

RBC Capital Markets, TD Securities (USA) LLC and HSBC Securities (USA) Inc. are the leads on the deal that launched with a lender call on Tuesday.

Proceeds will be used to repay existing debt, to fund the construction of in-progress facilities/pipelines, for general partnership purposes and to pay related fees and expenses.

Commitments are due on Aug. 22, the source added.

Veresen is a Calgary, Alta.-based jointly owned limited partnership between Veresen Inc. and Kohlberg Kravis Roberts & Co. LP that was formed in March 2015 to build, own and operate natural gas gathering and processing infrastructure in Western Canada.

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