Tallgrass Energy prices $1.05 billion term loan due August 2029 at SOFR plus 475 bps, OID of 98.5

By Paul A. Harris

Portland, Ore., Feb. 23 – Tallgrass HoldCo (Prairie Acquiror LP) priced a $1.05 billion five-year first-lien term loan (B3/B) with a 475 basis points spread to SOFR, with no floor, at 98.5, according to a market source.

The spread came at the tight end of the 475 bps to 500 bps spread talk. The price came rich to price talk of 98, according to market sources.

The term loan has 101 soft call protection for six months.

Jefferies LLC and JPMorgan Chase Bank are the bookrunners on the deal.

Proceeds plus proceeds from the planned sale of new senior secured notes will be used to refinance the company’s existing first-lien term loan.

Tallgrass HoldCo, backed by Blackstone, owns 100% of the equity interest in Tallgrass Energy Partners LP, an acquirer, owner, developer and operator of midstream energy assets in North America.

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