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Hfotco finalizes $600 million term loan B at Libor plus 275 bps
By Sara Rosenberg
New York, June 19 – Hfotco LLC (Houston Fuel Oil Terminal Co.) firmed pricing on its $600 million seven-year covenant-light term loan B (Ba3/BB-) at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.
The term loan still has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.
TD Securities and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the deal. Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the co-arrangers.
Proceeds will be used to refinance an existing term loan due 2021 and repay revolving credit facility drawings.
The company will cancel its existing $75 million revolver due 2019 as part of the refinancing. Going forward, liquidity will be managed at parent company SemGroup Corp., which benefits from a $1 billion revolver.
Hfotco operates a marine terminal located on the Houston Ship Channel that provides crude oil and petroleum products storage services.
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