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Goldman, Lehman Guide Magellan

24 Jun 2005

Goldman Sachs and Lehman Brothers have launched a seven-year, $275 million first-lien term loan for Magellan Midstream Holding.

Goldman Sachs and Lehman Brothers have launched a seven-year, $275 million first-lien term loan for Magellan Midstream Holding. Price talk is LIBOR plus 2 1/4%. The deal refinances $96 million of existing debt and backs a $150 million dividend to sponsors Carlyle/Riverstone and Madison Dearborn. The deal is secured by General Partnership shares of the master limited partnership pipeline company.

Standard & Poor's affirmed its BBB corporate rating of Magellan Midstream Partners and assigned a BB- rating to the new term loan. Magellan Midstream Holdings is the company's general partner and controls Magellan Midstream Partners. In its report, S&P said the rating reflects assets that generate relatively consistent free cash flow and volume-based fees and tariffs, which "insulate the company from commodity price risk."

John Chandler, v.p., cfo and treasurer of Magellan Midstream Partners, did not return a call, nor did a representative from Madison Dearborn. A spokesman for Carlyle/Riverstone had no comment.

24 Jun 2005

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