GIP II Blue launches $524.9 million term loan B at SOFR plus 400 bps

By Sara Rosenberg

New York, March 22 – GIP II Blue Holding LP (HESM Holdco) launched on Friday its $524,854,341 term loan B due Sept. 29, 2028 (Ba3/BB-) with price talk of SOFR plus 400 basis points with a 1% floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months, 0 bps CSA, amortization of 1% per annum and a debt service coverage ratio covenant of 1.05x, the source said.

Morgan Stanley Senior Funding Inc. is the sole bookrunner on the deal and the agent.

Commitments/consents are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to reprice an existing term loan B down from SOFR+CSA plus 450 bps with a 1% floor. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

GIP II, owned by Global Infrastructure Partners, is the owner of general partner and equity unit ownership interests in Hess Midstream LP and its operating subsidiary, Hess Midstream Operations LP.

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