M6 Midstream launches $150 million incremental term loan at SOFR plus 450 bps, 99-99.25 OID

By Paul A. Harris

Portland, Ore., Feb. 22 – M6 Midstream, LLC launched a $150 million fungible incremental term loan B due Sept. 15, 2029 on a Wednesday lender call, according to a market source.

Price talk is SOFR+CSA plus 450 basis points atop a 0.5% floor and an original issue discount of 99 to 99.25.

The spread is the same as that of the existing loan.

Commitments are due at noon ET on March 1.

The deal features reset call protection at 101 for six months.

The CSAs are 10 bps after one month, 15 bps after three months and 25 bps after six months.

Barclays is the administrative agent and sole bookrunner.

The borrowing entity will be M6 ETS Holdings II MidCo LLC.

The Houston-based midstream company plans to use the proceeds to repay the Align Midstream credit facility and merge Align Midstream into M6.

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