ArcLight GCX launches $615 million term loan B at SOFR plus 350 bps

By Sara Rosenberg

New York, Feb. 8 – ArcLight GCX (AL GCX Holdings LLC) was scheduled to hold a lender call at 1 p.m. ET on Wednesday to launch a $615 million senior secured term loan B due May 18, 2029 that is talked at SOFR+CSA plus 350 basis points with a 0.5% floor, an original issue discount of 99.75 for new money and a par issue price for existing lenders, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months, the source said.

Barclays is the left lead bookrunner on the deal and administrative agent. ArcLight Capital Partners is a co-manager.

Commitments are due at noon ET on Tuesday, the source added.

Proceeds will be used to reprice an existing first-lien term loan B down from SOFR+CSA plus 375 bps with a 0.5% floor. CSA on the existing loan is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

ArcLight GCX is a new-build 450-mile Permian natural gas pipeline.

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