Atlas Pipeline sets June 27 launch for $1.055 billion credit facility

By Sara Rosenberg

New York, June 19 - Atlas Pipeline Partners LP has scheduled a bank meeting for June 27 in New York to launch its proposed $1.055 billion credit facility, a company spokesman told Prospect News on Tuesday.

Wachovia is the lead bank on the deal that was previously labeled as late June/early July business.

The facility consists of a $250 million revolver and an $805 million seven-year term loan, the spokesman said, adding that the term loan is expected to carry pricing somewhere in the range of Libor plus 200 to 250 basis points.

Proceeds will be used to help fund the acquisition of Anadarko Petroleum Corp.'s interests in the Chaney Dell and Midkiff/Benedum natural gas gathering and processing systems for $1.85 billion, subject to customary closing conditions and other adjustments, and to repay existing revolver borrowings.

Other acquisition financing will come from a private placement to institutional investors of $1.125 billion, consisting of 25.6 million limited partner units of APL at $44.00 per unit.

Under the credit facility commitment letter, the term loan could have been sized at up to $900 million; however, because of the success of the equity offering, the company decided to go ahead with a smaller sized term loan.

The transaction is expected to close on July 11, subject to certain approvals.

Atlas Pipeline is a Moon Township, Pa., midstream energy services provider.

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