Lotus Midstream launches $350 million loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Sept. 12 – Lotus Midstream launched on Wednesday its $350 million seven-year term loan B with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and a debt service coverage ratio covenant of 1.1 times, the source said.

Barclays is the bookrunner on the deal.

Commitments are due at noon ET on Sept. 25, the source added.

Proceeds will be used to support the acquisition of the Centurion pipeline system and a Southeast New Mexico crude oil gathering system from Occidental Petroleum Corp.

Closing is expected in the third quarter, subject to customary conditions.

EnCap Flatrock Midstream is the sponsor.

Lotus is a Sugar Land, Texas-based energy company focused on the organic development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to the market.

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