NGL Energy tightens $700 million term loan B OID to 99

By Sara Rosenberg

New York, Jan. 24 – NGL Energy Operating LLC revised the original issue discount on its $700 million seven-year senior secured term loan B (B2/B+/BB-) to 99 from 98, according to a market source.

Also, although pricing remained at SOFR plus 450 basis points with a 0% floor, a step-down was added to SOFR plus 425 bps at 4x first-lien net leverage, the source said.

The term loan still has 101 soft call protection for six months, no CSA, amortization of 1% per annum and a debt service coverage ratio of 1.1x.

Security is a first priority lien on substantially all tangible and intangible personal property and material real property of the borrower and guarantors with respect to term debt priority collateral, subject to customary exceptions, and a second priority lien on ABL priority collateral, subject to customary exceptions.

TD Securities (USA) LLC, JPMorgan Chase Bank, Barclays, RBC Capital Markets, Wells Fargo Securities LLC, BofA Securities Inc., MUFG and TCB are the arrangers on the deal. StoneX is a co-manager.

Commitments are due at noon ET on Thursday, accelerated from 5 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, for general corporate purposes and to pay related fees and expenses.

NGL is a Tulsa, Okla.-based midstream energy company.

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