GIP Pilot cuts spread on $1.1 billion term loan to SOFR plus 300 bps

By Sara Rosenberg

New York, Sept. 18 – GIP Pilot Acquisition Partners LP revised price talk on its $1.1 billion first-lien term loan B due 2030 (Ba3/BB-) to a range of SOFR plus 300 basis points to 325 bps from a range of SOFR plus 350 bps to 375 bps, and then firmed the spread at SOFR plus 300 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from talk in the range of 98.5 to 99, the source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

JPMorgan Chase Bank, MUFG, Bank of Nova Scotia, Mizuho and Wells Fargo Securities LLC are the leads on the deal.

Recommitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of a 40% interest in Columbia Pipeline Holding Co. LLC, a natural gas pipelines and gas storage system comprised of Columbia Gas Transmission LLC and Columbia Gulf Transmission LLC, from TC Energy Corp.

TC Energy’s total proceeds for the transaction are expected to be about $3.9 billion in cash.

Closing is expected in the fourth quarter, subject to customary conditions.

GIP Pilot is owned by Global Infrastructure Partners.

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