Equitrans Midstream reduces term loan B amount to $600 million

By Sara Rosenberg

New York, Dec. 10 – Equitrans Midstream Corp. downsized its five-year senior secured term loan B (Ba3/BB/BB) to $600 million from $650 million, according to a market source.

Price talk on the term loan remained at Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99.

The term loan still has 101 soft call protection for six months, amortization of 1% per annum and a minimum debt service coverage ratio covenant.

Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc. and Guggenheim are the leads on the deal.

Commitments continue to be due at 5 p.m. ET on Wednesday, the source said.

Proceeds will be used to fund the acquisition of outstanding public equity interests in EQGP Holdings LP for $20.00 per unit in cash and for general corporate purposes.

The source explained that the company proactively downsized the term loan in anticipation of receiving an amendment to its existing revolving credit facility.

Closing is expected on or about Dec. 31.

Equitrans is a provider of midstream services in the Appalachian Basin through its three primary assets: the gathering system, the transmission and storage system, and its water services assets.

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