Ruby Western launches $500 million term loan at Libor plus 275-300 bps

By Sara Rosenberg

New York, March 8 - Ruby Western Pipeline Holdings launched on Friday its $500 million senior secured seven-year term loan (Ba2/BB+) with price talk of Libor plus 275 basis points to 300 bps with a 1% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The loan has 101 soft call protection for one year and a 75% excess cash flow sweep, the source said.

Commitments are due at noon ET on March 22.

Barclays and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Security is equity of the borrowers.

Proceeds will be used to fund a distribution to the sponsors and a six-month debt service reserve.

Leverage is 5.5 times net cash flow available for debt service, the source added.

Ruby Western Pipeline is a holding company with a 50% ownership of the Western US FERC-regulated Ruby Pipeline from Wyoming to Oregon that is a joint venture with Kinder Morgan.

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