SteelRiver seeks $273 million facility via BNP, Scotia, Union Bank

By Sara Rosenberg

New York, Feb. 16 - SteelRiver Infrastructure Partners LP is in market with a $273 million credit facility, according to a market source.

BNP Paribas, Scotia Capital and Union Bank are the lead banks on the deal that was relaunched last Friday.

The facility consists of a $75 million capital expenditures revolver, a $130 million working capital revolver and a $68 million term loan, the source said.

Pricing on the revolvers can range from Libor plus 350 basis points to 500 bps, and the commitment fee can range from 100 bps to 200 bps, based on ratings.

The term loan is talked at Libor plus 500 bps with an original issue discount of 99.

Proceeds from the term loan will be used to help fund the already completed acquisition of Dominion Resources Inc.'s Peoples Natural Gas Co.

Late last year, SteelRiver had come to market with - but never completed - a $375 million credit facility, consisting of a $100 million 31/2-year holdco term loan talked at Libor plus 600 bps with an original issue discount of 981/2, a $175 million three-year working capital revolver talked at Libor plus 400 bps and a $100 million three-year capex revolver were talked at Libor plus 400 bps.

When that deal was launched, it was thought that the company would be acquiring Hope Gas Inc. from Dominion in addition to Peoples Natural Gas.

SteelRiver is an investment management firm.

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