Traverse Midstream talks $1.14 billion term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Sept. 11 – Traverse Midstream Partners LLC launched on Monday its $1,135,000,000 seven-year first-lien term loan (B1/B+) with price talk of Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year and a debt service coverage ratio covenant of 1.4 times, the source said.

Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the bookrunners on the deal.

Commitments are due on Sept. 22.

Proceeds will be used to fund the construction costs for Rover Pipeline and to refinance existing debt.

Traverse is an Edmond, Okla.-based midstream company that owns a 35% joint venture interest in Rover Pipeline and a 25% joint venture interest in Ohio River System.

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