NorthRiver Midstream launches $525 million term loan at 99 OID

By Sara Rosenberg

New York, Feb. 12 – NorthRiver Midstream (Grizzly) launched on its call on Wednesday a $535 million incremental senior secured covenant-lite term loan B (Ba3/BB+) due Oct. 1, 2025 with original issue discount talk of 99, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points with a 0% Libor floor, in line with existing term loan B pricing.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum.

Incremental allowance is unlimited as long as pro forma secured net leverage does not exceed 4.5x plus the available incremental amount of C$200 million.

Citigroup Global Markets Inc., CIBC, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., RBC Capital Markets and Bank of Nova Scotia are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Feb. 26, the source said.

Proceeds will be used to repay in full an existing term loan A.

Closing is expected in late February.

With this transaction, the company is seeking a waiver to clarify that the incurrence of the additional term loan B can be fungible with the existing tranche to refinance the existing term loan A.

The waiver required a lender vote of 50.1%, the source added.

NorthRiver Midstream is a Canadian gas gathering and processing business.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.