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Ruby Western trims spread on $500 million loan to Libor plus 250 bps
By Sara Rosenberg
New York, March 20 - Ruby Western Pipeline Holdings reduced pricing on its $500 million senior secured seven-year term loan (Ba2/BB+) to Libor plus 250 basis points from talk of Libor plus 275 bps to 300 bps, according to a market source.
Also, the original issue discount on the loan firmed at 991/2, the tight end of the 99 to 99½ talk, the source said.
The loan still has a 1% Libor floor, 101 soft call protection for one year and a 75% excess cash flow sweep.
Security is equity of the borrowers.
Recommitments are due at noon ET on Thursday, the source added.
Barclays and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.
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 said.
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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