Oryx launches $1.5 billion term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, April 30 – Oryx Midstream Services (Lower Cadence Holdings LLC) launched on Tuesday its $1.5 billion seven-year term loan B (B2/B/BB) with price talk of Libor plus 450 basis points with a 0% Libor 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, the source said.

Commitments are due at noon ET on May 10.

The $1.65 billion of credit facilities also include a $150 million five-year super-priority revolver.

Barclays, Goldman Sachs Bank USA, RBC Capital Markets and Jefferies LLC are the lead arrangers on the debt.

Proceeds will be used to help fund the acquisition of the company by Stonepeak Infrastructure Partners, to refinance the existing Oryx Southern Delaware Holdings LLC facility, to consolidate Oryx Southern Delaware Holdings and Oryx Delaware Holdings LLC into a single borrower, to fund the required reserve accounts and for general corporate purposes.

Under the agreement, Oryx is being bought from Quantum Energy Partners, Post Oak Energy Capital, Concho Resources, WPX Energy and other investors for about $3.6 billion.

Oryx is a Midland, Tex.-based midstream crude operator in the Permian Basin.

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