AL Gulf Coast to launch $305 million secured term loan on Thursday

By Sara Rosenberg

New York, June 2 - AL Gulf Coast Terminals LLC is scheduled to hold a bank meeting on Thursday to launch its proposed $305 million senior secured term loan, according to a market source.

Barclays is the lead bank on the deal that will be raised at the holding company level.

The term loan will have 5-B ratings, the source said.

Proceeds will be used to refinance existing holdco debt, fund a debt service reserve account and pay a dividend to the company's sponsor, ArcLight Capital Holdings LLC.

There is an existing revolver as well as notes at the opco level that will remain in place.

Channelview, Texas-based AL Gulf Coast owns 100% interest in the Houston Fuel Oil Terminal Co. LLC, a provider of crude and residual fuel oil storage in the Gulf of Mexico.

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