ArcLight NGPL sets term loan new money issue price at par

By Sara Rosenberg

New York, Dec. 14 – ArcLight NGPL Holdings LLC (AL NGPL Holdings LLC) firmed the issue price for the new money portion of its roughly $268 million term loan B due April 15, 2028 at par, the tight end of the 99.75 to par talk, according to a market source.

The issue price for the existing money portion of the new term loan remained at par.

As before, pricing on the new term loan is SOFR plus 350 basis points with a 1% floor and no CSA, and the debt has 101 soft call protection until March 2024.

The new term loan will be fungible with the company’s existing $461 million term loan due April 15, 2028.

Barclays is the lead and administrative agent on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds from the term loan will be used to reprice an existing roughly $233 million term loan B down from SOFR+CSA plus 375 bps with a 1% floor, to fund a distribution to ArcLight and to pay transaction costs. The existing CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

NGPL is a FERC-regulated natural gas pipeline system.

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