Glass Mountain launches $300 million term B at Libor plus 450-475 bps

By Sara Rosenberg

New York, Dec. 5 – Glass Mountain Pipeline Holdings LLC launched on Tuesday its $300 million seven-year term loan B with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, amortization of 1% per annum and a 1.1 times debt service coverage ratio covenant, the source said.

Furthermore, the term loan requires an excess cash flow sweep of 100% when consolidated net leverage is more than 4.5 times, a capex reserve of $25 million, and a maximum discretionary capex of $25 million unless consolidated net leverage is 4.5 times or less or capex is funded from the capex reserve or by equity.

The company’s $325 million of senior secured credit facilities (B2/B) also include a $25 million five-year revolver.

Morgan Stanley Senior Funding and Macquarie Capital (USA) Inc. are the joint lead arrangers and joint bookrunners on the deal.

Commitments are due at noon ET on Dec. 15, the source added.

Proceeds will be used to fund the acquisition of Glass Mountain by BlackRock Inc.’s Global Energy and Power Infrastructure Fund, in partnership with Navigator Energy Services, from SemGroup Corp. and NGL Energy Partners LP.

Closing is expected this quarter, subject to governmental approvals and other customary conditions.

Glass Mountain is a midstream asset consisting of a fully integrated, roughly 260-mile crude transportation system linking the Stack, Mississippi Lime and Granite Wash plays to Cushing, Okla.

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