M6 Midstream cuts spread on $600 million term B to SOFR plus 450 bps

By Sara Rosenberg

New York, Aug. 11 – M6 Midstream (M6 ETX Holdings II MidCo LLC) lowered pricing on its $600 million seven-year senior secured term loan B (B1/B+/BB+) to SOFR plus 450 basis points from SOFR plus 475 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 97.5 from talk in the range of 96 to 96.5, the MFN sunset was revised to 18 months from 12 months, and lender calls are now required quarterly instead of annually, the source said.

The term loan still has a 0.5% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months, and a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

Barclays, Jefferies LLC and Blackstone Credit are the joint bookrunners on the deal, with Barclays the administrative agent.

Final commitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used with $745 million of sponsor and management equity to fund the acquisition of Midcoast East Texas system.

M6 Midstream is a Houston-based midstream company.

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