SteelRiver launches $375 million facility, $470 million bridge loan

By Sara Rosenberg

New York, Nov. 6 - SteelRiver Infrastructure Partners LP held a bank meeting on Friday to launch a $375 million credit facility and a $470 million bridge loan, according to a market source.

BNP Paribas, Scotia Capital, BayernLB and Union Bank are the lead banks on the deal.

The credit facility consists of a $175 million three-year working capital revolver, a $100 million three-year capex revolver and a $100 million 31/2-year holdco term loan, the source said.

Price talk on both revolvers is Libor plus 400 basis points and price talk on the term loan is Libor plus 600 bps.

Upfront fees on the revolvers are 100 bps for commitments of $25 million and 75 bps for commitments of $15 million.

The term loan is being offered at an original issue discount of 981/2.

Meanwhile, the one-year secured bridge loan, which is intended to be taken out with bonds, is being talked at Libor plus 400 bps, stepping up to Libor plus 475 bps over time.

Upfront fees on the bridge loan are 50 bps for commitments of $50 million and 25 bps for commitments of less than $50 million.

Proceeds will be used to fund the acquisition of Dominion Resources Inc.'s Peoples Natural Gas Co. and Hope Gas Inc. natural gas distribution utilities located in Pennsylvania and West Virginia.

SteelRiver is an investment management firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.