Tortoise Borrower launches $40 million add-on term loan B at 99 OID

By Sara Rosenberg

New York, June 3 – Tortoise Borrower LLC launched on Monday its fungible $40 million add-on covenant-lite term loan B due Jan. 31, 2025 with price talk of Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The add-on term loan has 101 soft call protection for six months and a ticking fee of half the margin from days 31 to 60 and the full margin thereafter, the source said.

Morgan Stanley Senior Funding Inc. is the lead bank on the deal.

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used to fund the acquisition of the midstream energy asset management business of Advisory Research Inc., a subsidiary of Piper Jaffray Cos.

Closing is expected in the second half of the year, subject to regulatory approval and customary conditions, including fund board/shareholder approval.

The pro forma term loan B size will be about $340 million.

Tortoise is a Leawood, Kan.-based provider of investment solutions and market insights.

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