GIP III Stetson finalizes $700 million term loan at 98.5 OID

By Sara Rosenberg

New York, Oct. 5 – GIP III Stetson firmed the original issue discount on its $700 million five-year term loan B (B2) at 98.5, the wide end of the 98.5 to 99 talk, according to a market source.

Pricing on the term loan remained at SOFR+10 basis points CSA plus 425 bps with a 0% floor.

The term loan still 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 are the arrangers on the deal.

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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