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M6 Midstream $600 million term loan B breaks for trading atop OID
By Sara Rosenberg
New York, Aug. 11 – M6 Midstream (M6 ETX Holdings II MidCo LLC) trimmed the spread on its term loan B, tightened the original issue discount and made some changes to documentation before freeing up for trading on Thursday.
Specifically, the company reduced 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 and revised the original issue discount to 97.5 from talk in the range of 96 to 96.5, a market source remarked.
In addition, the MFN sunset was changed to 18 months from 12 months and quarterly lender calls are now required instead of annual calls.
As before, the term loan 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.
Final commitments were due at noon ET on Thursday and the term loan broke for trading in the afternoon, with levels quoted at 97¾ bid, 98¾ offered, another source added.
Barclays, Jefferies LLC and Blackstone Credit are leading the deal that will be used to help fund the acquisition of Midcoast East Texas system.
M6 Midstream is a Houston-based midstream company.
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