Artera Services raises first-lien term loan amount to $930 million

By Sara Rosenberg

New York, Feb. 7 – Artera Services LLC upsized its seven-year first-lien term loan (B3/B-) to $930 million from $740 million, according to a market source.

Pricing on the term loan remained at SOFR plus 450 basis points with an original issue discount of 99.25.

The term loan still has 101 soft call protection for six months.

Earlier in syndication, pricing on the term loan was reduced from SOFR plus 500 bps and the discount was tightened from talk in the range of 98 to 99.

UBS Investment Bank, BofA Securities Inc., BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Deutsche Bank Securities Inc., Jefferies LLC, Mizuho, MUFG and PNC are the arrangers on the deal. Credit Suisse is the administrative agent.

Proceeds will be used with $600 million of senior secured first-priority notes, cash from the balance sheet, a sponsor first-lien PIK term loan and a sponsor contribution to refinance existing first- and second-lien term loans, to repay borrowings outstanding under the company’s receivables facility, to redeem existing notes in full, and to pay related fees and expenses.

The notes were downsized from $740 million with the term loan upsizing, and the extra $50 million in total proceeds raised as a result of the $190 million loan upsizing will be used for general corporate purposes.

Artera is an Atlanta-based provider of integrated infrastructure services serving utilities and midstream operators in the natural gas market.

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