Epic Crude launches $1 billion term loan B at Libor plus 500 bps

By Sara Rosenberg

New York, Feb. 6 – Epic Crude Services launched on Wednesday its $1 billion seven-year senior secured term loan B (B3/B+) with price talk of Libor plus 500 basis points with a 0% Libor floor and an original issue discount of 98, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, amortization of 1% per annum and a minimum debt service coverage ratio covenant, the source said.

The company’s $1,075,000,000 of credit facilities also include a $75 million super-priority revolving credit facility.

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., ABN Amro and Mirae are the leads on the deal.

Commitments are due on Feb. 20, the source added.

Proceeds will be used to partially fund the crude pipeline construction project, fund associated debt service reserve and construction reserve accounts, and pay related fees and expenses.

Equity investors are Ares Management Corp. and affiliates of Noble Energy Inc., Apache Corp. and Diamondback Energy.

Epic Crude is a 700-mile crude pipeline originating in the Permian and Eagle Ford Basins and terminating in Corpus Christi.

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