Brookfield NGPL to launch $465 million term loan on Tuesday

By Sara Rosenberg

New York, Nov. 27 – Brookfield NGPL (BIP PipeCo Holdings LLC) will hold a lender call at 11 a.m. ET on Tuesday to launch a $465 million seven-year senior secured term loan, according to a market source.

Barclays, RBC Capital Markets, CIBC and Santander are the bookrunners on the deal. Barclays is the administrative agent.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a perfected first priority lien on all of the membership interests issued by the borrower, and all existing and future membership interests of NGPL Holdings LLC owned by the borrower and all other assets of the borrower, including without limitation general intangibles, hedging agreements, deposit and securities accounts, including the debt service reserve account and the available cash account and intercompany promissory notes payable by Midco LLC (a wholly owned subsidiary of the company) to the borrower in the amount of $250 million.

Proceeds will be used to pay a distribution to Brookfield and pay transaction costs.

Brookfield NGPL is a FERC-regulated natural gas pipeline system.

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