M6 Midstream launches $600 million term loan B at SOFR plus 475 bps

By Sara Rosenberg

New York, Aug. 8 – M6 Midstream (M6 ETX Holdings II MidCo LLC) launched on Monday its $600 million seven-year senior secured term loan B (B1//BB+) with price talk of SOFR+CSA plus 475 basis points with a 0.5% floor and an original issue discount of 96 to 96.5, 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, and a ticking fee of half the spread from days 46 to 90 and the full spread thereafter, the source said.

Barclays, Jefferies LLC and Blackstone Credit are the joint bookrunners on the deal, with Barclays the administrative agent.

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

Proceeds will be used with $745 million of sponsor and management equity to fund the acquisition of Midcoast East Texas system.

M6 Midstream is a Houston-based midstream company.

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