Gibson Energy revises tranche sizes, increases term loan pricing

By Sara Rosenberg

New York, June 3 - Gibson Energy ULC downsized its seven-year term loan to $625 million from $700 million and upsized its five-year revolver to $275 million from $250 million, according to a market source.

In addition, pricing on the term loan was lifted to Libor plus 450 basis points from talk of Libor plus 350 bps to 375 bps, and the 101 soft call protection was extended to two years from one year, the source said.

As before, the term loan has a 1.25% Libor floor and is being offered at an original issue discount of 99.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and UBS Securities LLC are the lead banks on the now $900 million senior secured credit facility (B1), down from $950 million, with J.P. Morgan the left lead.

Proceeds from the credit facility will be used to help refinance $560 million of 11¾% first-lien senior secured notes due 2014 and $200 million of 10% senior unsecured notes due 2018, to repay borrowings under an asset-based credit facility and for general corporate purposes.

Other funds for the refinancing will come from an initial public offering.

The tender offers for the notes will expire on June 13.

Gibson is a Calgary, Alberta-based midstream energy company, a crude oil transporter and a retail propane distributor.

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