Bloomberg News

Energy & Minerals Group Said to Set Rate on $325 Million Loan

March 11, 2013

Energy & Mineral Group set the rate it will pay on a $325 million term loan, according to a person with knowledge of the transaction.

Proceeds from the loan along with approximately $650 million of equity will be used to fund the development of Markwest Utica EMG LLC, said the person, who asked not to be identified because the information is private.

MarkWest Energy Partners LP (MWE:US) and Energy & Mineral plan on creating the Utica Shale joint venture to develop natural-gas processing, transportation and marketing infrastructure in eastern Ohio, according to data compiled by Bloomberg.

The seven-year debt will pay interest at 4.5 percentage points more than the London interbank offered rate, according to the person. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

The loan is expected to be sold at 99 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Lenders will receive one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said.

Credit Suisse Group AG is arranging the financing for the Houston-based private-equity firm, the data show.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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Companies Mentioned

  • MWE
    (MarkWest Energy Partners LP)
    • $70.02 USD
    • 0.33
    • 0.47%
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