Narrative
Full Description
Project narrative
On December 16, 2019, financial close was reached on a deal in which a syndicate of 20 banks — including Bank of China, New York Branch — entered into a $1,400,000,000 USD syndicated loan agreement with Hess Midstream Partners LP, a United States-based midstream energy company that owns, operates, develops, and acquires midstream assets to provide services to Hess Corporation and third-party customers. The loan was divided into two tranches: a revolving credit commitment of $1,000,000,000 USD and a Tranche A term loan commitment of $400,000,000 USD. The maturity of the loan is 5 years, and the interest rate is LIBOR plus an applicable margin. The proceeds of the Tranche A Term Loans were used by Hess Midstream Partners LP solely to (i) consummate the refinancing of an existing credit agreement and (ii) pay fees and expenses incurred in connection with the transaction of Hess Infrastructure Partners Holding LLC. While Bank of China, New York Branch contributed $24,285,714.29 USD to the revolving commitment and $9,714,285.71 USD to the Tranche A term loan for a total of $34,000,000 USD to this loan (Record ID#108119), the following lenders also participated: JPMorgan Chase Bank, N.A. ($120,000,000 USD total), Citibank, N.A. ($120,000,000 USD total), Goldman Sachs Lending Partners LLC ($120,000,000 USD total), Morgan Stanley Bank, N.A. ($120,000,000 USD total), MUFG Bank, Ltd. ($120,000,000 USD total), Wells Fargo Bank, N.A. ($120,000,000 USD total), Bank of Montreal ($68,000,000 USD total), BNP Paribas ($68,000,000 USD total), DNB Capital LLC ($68,000,000 USD total), Mizuho Bank, Ltd. ($68,000,000 USD total), Sumitomo Mitsui Banking Corporation ($68,000,000 USD total), The Bank of Nova Scotia, Houston Branch ($68,000,000 USD total), The Toronto-Dominion Bank, New York Branch ($68,000,000 USD total), Banco Bilbao Vizcaya Argentaria, S.A. New York Branch ($34,000,000 USD total), Barclays Bank PLC ($34,000,000 USD total), Truist Bank (formerly known as Branch Banking & Trust Company) ($34,000,000 USD total), Credit Agricole Corporate and Investment Bank ($34,000,000 USD total), and U.S. Bank National Association ($34,000,000 USD total). In July 2022, the lenders and borrower entered into an amendment in which they extended the maturity to July 2027 (Record ID#108121). The acquisition was completed on December 17, 2019.
Staff comments
1. The entirety of the loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/1619739/000119312519315378/d836895dex41.htm. The dropbox link is available here: https://www.dropbox.com/scl/fi/yqplvv3dd8m036v37mwg2/Source_ID_218306.pdf?rlkey=nzhn783raxktnr5x2bd654qyt&st=yjs0yibk&dl=0 2. Hess Corporation is an American global independent energy company, headquartered in New York City, United States. It is engaged primarily in the exploration and production of crude oil and natural gas. Hess has operations in North Dakota’s Bakken shale, the Gulf of Mexico, and several international offshore fields. 3. AidData estimates the interest rate by adding the 6-month average SOFR rate in July 2022 and an applicable margin based on credit ratings. At the time, Hess Corporation’s credit rating was BBB- (1.075%).