Goldman Sachs MLP funds get fixed, floating loans via Scotiabank

By Susanna Moon

Chicago, July 30 – Goldman Sachs MLP and Energy Renaissance Fund said it entered into a new evergreen fixed- and floating-rate margin loan facility with the Bank of Nova Scotia, Houston branch, as lender.

Under the terms, the fund may borrow up to $430 million and will pay either a floating or fixed rate on outstanding borrowings, according to a company press release.

For floating-rate borrowings, Scotiabank will charge the fund the three-month Libor rate plus a mutually agreed-upon spread, the release noted.

For fixed rates, Scotiabank will charge the fund the cost of Scotiabank’s interest rate hedge, which is used to minimize interest rate risk, plus a mutually agreed-upon spread.

At closing, the borrowings consisted of a $160 million floating-rate tranche and two $117.5 million fixed-rate tranches, with one due Sept. 30, 2020 and the other due Sept. 30, 2022.

Scotiabank may terminate the facility or change any mutually agreed-upon spread with no less than 364 days’ prior notice.

Proceeds were used to repay all outstanding borrowings under the fund’s previous credit facility.

Goldman Sachs MLP and Energy Renaissance Fund is a non-diversified, closed-end management investment company that began trading on the New York Stock Exchange on Sept. 26, 2014. The fund seeks a high level of total return with an emphasis on current distributions to shareholders. The fund invests primarily in master limited partnerships and other energy investments.

Opportunities fund

Goldman Sachs MLP Income Opportunities Fund said it entered into a new evergreen fixed- and floating-rate margin loan facility with Bank of Nova Scotia, Houston branch, as lender.

The fund may borrow up to $310 million under the facility, paying either a floating or fixed rate on the loans, according to a separate release.

For the floating rate, Scotiabank will charge the fund the three-month Libor rate plus a mutually agreed-upon spread, the release noted.

For fixed rates, Scotiabank will charge the fund the cost of Scotiabank’s interest rate hedge, which is used to minimize interest rate risk, plus a mutually agreed-upon spread.

At closing, there was a $116 million floating-rate tranche and two $70 million fixed-rate tranches, with one due Sept. 30, 2020 and the other due Sept. 30, 2022.

Scotiabank may terminate the facility or change the spread with at least 364 days’ prior notice.

Proceeds were used to repay all outstanding borrowings under the fund’s previous credit facility.

Goldman Sachs MLP Income Opportunities Fund is a non-diversified, closed-end management investment company that began trading on the NYSE on Nov. 25, 2013. The fund seeks a high level of total return with an emphasis on current distributions to shareholders. The fund invests primarily in master limited partnerships.

Goldman Sachs Asset Management, LP is a financial services company is based in New York City. Its energy and infrastructure team manages the funds.

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