Gibson Energy talks $650 million term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, May 10 - Gibson Energy ULC launched its $650 million term loan B due June 2018 on Thursday morning with talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The loan has 101 soft call protection through June 2013, the source said.

Proceeds will be used to refinance an existing roughly $650 million term loan due June 2018 that was done in June 2011 at pricing of Libor plus 450 bps with a 1.25% Libor floor and was sold at an original issue discount of 99.

The existing loan included 101 soft call protection for two years.

Furthermore, the company is looking to get an up to $100 million add-on to its revolver for general corporate purposes.

J.P. Morgan Securities LLC, UBS Securities LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

Closing is expected before the end of this quarter.

Gibson is a Calgary, Alta.-based midstream energy company.

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