CQP sets term B size at $2.5 billion, firms at Libor plus 375 bps

By Sara Rosenberg

New York, May 27 – CQP Holdco upsized its seven-year first-lien term loan B (B2/B) to $2.5 billion from a revised amount of $2.4 billion, but the loan is still smaller than its original launch size of $2.9 billion, according to a market source.

Also, pricing finalized at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, the source said.

Included in the term loan is a 25 bps step-down at 5.75x net first-lien leverage.

The term loan still has a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months, amortization of 1% per annum and a 1.05x debt service coverage ratio covenant.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Blackstone, Sera Global, MUFG, RBC Capital Markets LLC, SMBC and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used with $1.4 billion of senior secured notes, upsized from $1 billion, to refinance existing debt.

Closing is expected during the week of May 31.

CQP Holdco is an owner and operator of natural gas facilities.

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