AL Gulf increases discount on $305 million holdco term loan to 97

By Sara Rosenberg

New York, July 7 - AL Gulf Coast Terminals LLC revised the original issue discount on its $305 million six-year senior secured holdco term loan (Ba2/BBB-) to 97 from most recent talk of 98, according to a market source.

In addition, the loan is now non-callable for one year, then at 101 in the second year, whereas before it only carried 101 soft call protection for one year, the source said.

Pricing on the term loan was left unchanged at Libor plus 500 basis points with a 1.75% Libor floor.

Barclays is the lead bank on the deal.

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.

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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