Midcoast ups spread on $600 million term loan B to Libor plus 550 bps

By Sara Rosenberg

New York, June 28 – AL Midcoast Holdings LLC increased pricing on its $600 million seven-year first-lien term loan B (BB-/BB) to Libor plus 550 basis points from Libor plus 500 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99, 101 soft call protection for six months and a 1.1 times debt service coverage ratio covenant.

Credit Suisse Securities (USA) LLC, Barclays and MUFG are the arrangers on the deal.

Commitments remained due at noon ET on Thursday, the source added.

Proceeds will be used to fund the buyout of the company by ArcLight Capital Partners LLC from Enbridge Inc.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Midcoast is a provider of natural gas and natural gas liquids services.

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