Oryx trims spread on $1.5 billion term loan B to Libor plus 400 bps

By Sara Rosenberg

New York, May 9 – Oryx Midstream Services (Lower Cadence Holdings LLC) reduced pricing on its $1.5 billion seven-year term loan B (B2/B/BB) to Libor plus 400 basis points from Libor plus 450 bps, according to a market source.

Also, the original issue discount on the term loan was set at 99, the tight end of the 98.5 to 99 talk, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for one year.

Final commitments were scheduled to be due at 5 p.m. ET on Thursday, accelerated from noon ET on Friday, the source added.

The company’s $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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