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Leveraged Loans

Rockpoint Gas Storage preps $1.25B TLB for dividend recap

Lead arrangers on the deal are Wells Fargo and RBC Capital Markets.

By Tyler Udland

Published

Lead arrangers Wells Fargo and RBC Capital Markets held a lender call on Sept. 3 to launch a $1.25 billion term loan B for Rockpoint Gas Storage, according to sources.

The seven-year term loan was guided at S+350-375 and an OID of 99 ahead of the lender call. There will be six months of 101 soft call protection, and the loan will have a 1.1x debt service coverage ratio covenant.

Proceeds will be used to repay existing debt and fund a dividend. The borrowers are Rockpoint Gas Storage Partners LP and Rockpoint Gas Storage Canada Ltd.

Rockpoint Gas Storage is an independent owner and operator of natural gas storage facilities in North America. The company is sponsored by Brookfield Infrastructure Partners.

Vithun Khamsong/Getty Images

About Tyler Udland

As a senior reporter for LCD, Tyler covers the institutional leveraged loan market including new issue deals and secondary trading activity for loans. In addition to covering new term loans throughout the syndication process, he covers events affecting outstanding debt of loan issuers that affect their debt prices, including ratings changes, earnings results and acquisition news. Prior to joining the editorial staff of LCD, Tyler spent over 2.5 years with the research group as a leveraged loan analyst, focusing on the leveraged loan index.