Energy Transfer launches $400 million tack-on term loan at OID of 99

By Sara Rosenberg

New York, April 3 - Energy Transfer Equity LP launched on Thursday its fungible $400 million first-lien tack-on term loan due December 2019 with original issue discount talk of 99, according to a market source.

Pricing on the tack-on loan is Libor plus 250 basis points with a 0.75% Libor floor, in line with the existing term loan, and there is 101 soft call protection through June 2014.

Covenants include maximum leverage and minimum interest coverage ratios.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

Proceeds will be used to repay revolver borrowings and for general corporate purposes.

Commitments are due on April 10.

Energy Transfer is a Dallas-based midstream oil and gas company.

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