Tallgrass talks roughly $1.12 billion facility at Libor plus 300 bps

By Sara Rosenberg

New York, May 19 - Tallgrass Operations LLC launched on Monday its $1,124,400,000 credit facility with price talk of Libor plus 300 basis points and a par offer price, according to a market source.

The facility consists of a $200 million revolver due Nov. 13, 2017, a $718.4 million term loan B due Nov. 13, 2018 and a $206 million delayed-draw term loan due Nov. 13, 2017.

The term loan B is talked with a 1% Libor floor, and the delayed-draw term loan is talked with a 0.75% Libor floor, the source said.

Both term loans have 101 soft call protection for six months.

Barclays is the lead bank on the deal.

Proceeds will be used to reprice the existing revolver from Libor plus 400 bps, the existing term loan B from Libor plus 325 bps with a 1% Libor floor and the existing delayed-draw term loan from Libor plus 400 bps with a 0.75% Libor floor.

Commitments are due by noon ET on Thursday, the source added.

In addition to the repricing, the company is seeking some amendments to its credit facility.

Tallgrass is an Overland Park, Kan.-based owner, operator, acquirer and developer of midstream energy assets.

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