Medallion cuts spread on $700 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Oct. 31 – Medallion Midland Acquisition LLC reduced pricing on its $700 million seven-year first-lien term loan (B2//BB+) to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.75 from 99, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $725 million of credit facilities also include a $25 million super-priority revolver.

Jefferies LLC is the lead arranger on the deal.

Commitments were scheduled to be due by noon ET on Tuesday, the source added.

Proceeds will be used to fund the acquisition of the company by Global Infrastructure Partners from the Energy & Minerals Group and Laredo Petroleum Inc. for $1,825,000,000 plus potential additional cash consideration, subject to customary closing adjustments.

Medallion is an Irving, Texas-based crude oil gathering and intra-basin transportation system in the Midland Basin, within the eastern half of the prolific Permian Basin.

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