GulfTerra upsizes term loan to $300 million, cuts interest rate

New York, Dec. 10 - GulfTerra Energy Partners LP said it completed the refinancing of its senior secured credit facility in which it upsized the term loan B to $300 million, extended the maturity and reduced the interest rate.

The term loan B was previously sized at $160 million.

The maturity is now extended to December 2008, and the interest rate is Libor plus 225 basis points, down 125 basis points from the previous rate.

In addition, the Houston oil and gas company revised the covenants in the loan to correspond with its revolving credit facility and provide greater operating flexibility.

Proceeds of the new loan will be used to refinance the existing term loan and reduce borrowings on the revolver.

GulfTerra also said it will redeem $269 million of its senior subordinated debt using part of the proceeds from its equity offerings completed in October.

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