AL Gulf Coast launches $305 million term at Libor plus 375-400 bps

By Sara Rosenberg

New York, June 3 - AL Gulf Coast Terminals LLC launched its $305 million senior secured term loan on Thursday with price talk in the Libor plus 375 basis points to 400 bps area with a 1.5% Libor floor and an original issue discount in the 98 to 98½ context, 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.

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 a 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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