Retail Supplier Announces Closing of New $700 Million Term Loan Facility
August 13, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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UGI Corporation announced today that its subsidiary, UGI Energy Services, LLC, whose operations include retail supply in addition to midstream activities, closed a new seven-year $700 million secured Term Loan B facility.
The new Term Loan B facility priced at LIBOR + 3.75%. Proceeds from the facility, along with corporate liquidity, will be used for the long-term financing of the previously reported acquisition of the equity interests of Columbia Midstream Group, LLC from a subsidiary of TC Energy Corporation for approximately $1.275 billion, which closed on August 1, 2019.
With respect to retail gas marketing, UGI said that the transaction, "facilitates access to local supply sourced from producers shipping on the CMG gathering assets."
The administrative and collateral agent of the new Term Loan B facility is Credit Suisse AG. The joint bookrunners and joint lead arrangers are Credit Suisse Loan Funding LLC, JP Morgan Chase Bank, N.A., Citizens Bank, N.A., PNC Capital Markets LLC and Wells Fargo LLC.