Matador Bidco to launch $200 million incremental term B on Tuesday

By Sara Rosenberg

New York, Feb. 3 – Matador Bidco is set to hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $200 million incremental term loan B (BB-/BB) due October 2026, according to a market source.

HSBC Securities (USA) Inc. is the physical bookrunner on the deal. TCG, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, Santander and Intesa are also bookrunners.

Pricing on the incremental term loan is Libor plus 475 basis points with a 0% Libor floor, in line with existing term loan B pricing.

Original issue discount talk on the incremental term loan is not yet available.

Included in the incremental term loan is a ticking fee of half the spread from days 45 to 90 and the full spread thereafter, the source said.

The loan has a 1.1x debt service coverage ratio covenant and a six-month debt service reserve account requirement.

Commitments are due at 5 p.m. ET on Feb. 11.

Proceeds will be used to fund a portion of a pre-agreed deferred purchase price to Mubadala.

Funding is expected in mid-May.

With the incremental loan, the term loan B will total $825 million.

The company is also seeking an amendment to its credit agreement to revise the debt incurrence and restricted payment provisions to facilitate the proposed transaction, the source added.

Lenders are being offered a 5 bps amendment fee.

Carlyle is the sponsor.

Matador Bidco is a holding company that is a 38.5% shareholder in CEPSA, a privately held integrated energy company in Europe.

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