Crestwood Holdings sets price talk for $365 million term loan B

By Paul A. Harris

Portland, Ore., May 15 - Crestwood Holdings LLC set price talk and the terms for its $365 million six-year term loan B on Wednesday, according to a market source.

The deal is talked with a Libor spread of 625 basis points to 650 bps with a 1.25% Libor floor at a price of 99.

There is an accordion feature set at the greater of $75 million and any amount up to pro forma leverage of less than or equal to 5.75 times, subject to a 50 bps most-favored nation provision.

There is also a 1% per annum amortization.

Optional prepayments include 102, 101 soft call protection for debt pre-payments.

Mandatory prepayments include 100% of all non-ordinary course asset sales, 100% debt (subject to certain baskets), a 50% excess cash flow sweep if leverage greater than or equal to four times and a 25% excess cash flow sweep if leverage is greater than or equal to 3.5 times and less than four times.

Commitments are due on May 27.

Citigroup Global Markets Inc. is the left lead bank. BofA Merrill Lynch, J.P. Morgan Securities LLC, Barclays, Morgan Stanley & Co., RBC Capital Markets, SunTrust Robinson Humphrey and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to refinance existing debt, the source added.

Crestwood Holdings is a Houston-based provider of midstream infrastructure services for the development of shale and unconventional resource basins.

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