A Jefferies-led arranger group has scheduled a lender call for 10 a.m. ET on Nov. 12 to launch a $1.5 billion first-lien term loan for Lucid Energy Group LLC that will be used to refinance existing debt and fund a distribution, according to sources.

Price talk for the seven-year term loan is not yet available, but the facility will be governed by a debt service coverage ratio covenant. Lenders will be offered six months of 101 soft call protection. Financing will also include a $150 million, five-year super priority revolving credit facility that will also have a debt service coverage ratio covenant and a super senior leverage ratio covenant.

Additional arrangers on the transaction include Goldman Sachs and J.P. Morgan.

The issuer was last in the loan market in May 2019 with a $125 million non-fungible incremental term loan B-2 due February 2025 (L+300, 1% Libor floor) that was issued for general corporate purposes, including the funding of capital expenditures. The issuer also has a first-lien term loan due February 2025 (L+300, 1% Libor floor) that was placed in February 2018 to back its acquisition by a joint venture controlled by Riverstone Global Energy and Power Fund VI LP, an investment fund managed by Riverstone Holdings, and investment funds managed by Goldman Sachs Merchant Banking Division. The borrower is Lucid Energy Group II Borrower LLC.

Lucid Energy Group is a natural gas gathering and processing company operating in the Delaware Basin.