GIP III Stetson launches $700 million term loan at SOFR plus 425 bps

By Sara Rosenberg

New York, Sept. 26 – GIP III Stetson launched on Tuesday its $700 million five-year term loan B (B2) with price talk of SOFR+10 basis points CSA plus 425 bps with a 0% floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan has 101 soft call protection for six months, a minimum debt service coverage ratio covenant of 1.1x, and an excess cash flow sweep of 75% if beginning leverage is more than 5x, 50% if beginning leverage is more than 2.5x, and 25% if beginning leverage is less than 2.5x.

BofA Securities Inc., MUFG and others to be announced are the arrangers on the deal.

Commitments are due at 10 a.m. ET on Oct. 5, the source added.

Proceeds will be used to amend and extend an existing Stetson HoldCo term loan B due 2025.

Stetson Midstream is a Global Infrastructure Partners owned HoldCo with a controlling ownership stake in EnLink, an operator of a midstream business underpinned by a portfolio of assets across Texas, New Mexico, Louisiana, and Oklahoma.

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