Utopia Pipeline launches $25 million incremental term B at 99 OID

By Sara Rosenberg

New York, March 27 – Utopia Pipeline (Riverstone Utopia Member LLC) launched on Wednesday a fungible $25 million incremental term loan B due Oct. 17, 2024 with original issue discount talk of 99, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 1% Libor floor.

Barclays is the lead arranger on the deal.

Proceeds will be used to pay a distribution to the sponsor, Riverstone Holdings LLC.

The company is also seeking an amendment to its existing credit agreement to, among other things, permit the distribution of the proceeds from the incremental loan, the source said.

Lenders are offered a 10 bps amendment fee.

Commitments are due on April 3, the source added.

Utopia Pipeline transports ethane and ethane-propane mixtures from the core of the Utica and Marcellus shale to petrochemical companies operating in Ontario, Canada.

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