Atlas Energy cuts spread on $240 million term B to Libor plus 550 bps

By Sara Rosenberg

New York, July 19 - Atlas Energy LP reduced pricing on its $240 million six-year term loan B (B3/B) to Libor plus 550 basis points from talk of Libor plus 600 bps to 625 bps, according to a market source.

As before, the loan has a 1% Libor floor, an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two.

Recommitments were due on Friday, the source said.

Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the $800 million acquisition of natural gas proved reserves in the Raton, N.M.; Black Warrior, Ala.; and Arkoma Basin, Okla., basins from EP Energy E&P Co. LP.

Closing is expected in the third quarter, subject to purchase price adjustments.

Atlas Energy is a Pittsburgh-based master limited partnership that owns an interest in producing natural gas and oil wells.

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