Bourland & Leverich's $125 million term loan talk adjusted to Libor plus 900 bps, OID 95

By Sara Rosenberg

New York, Aug. 4 - Bourland & Leverich Supply Co. LLC revised price talk on its $125 million five-year term loan (B+) to Libor plus 900 basis points from initial guidance of Libor plus 850 bps to 900 bps, and widened the original issue discount to 95 from the 97 to 98 context, according to a market source.

The 2% Libor floor was left unchanged.

Also, the loan is now non-callable for two years, then at 105½ in year three, 102¾ in year four and par in year five, the source remarked. Previously, it was non-callable for one year, then at 102 in year two and 101 in year three.

Amortization on the term loan remained intact at 5% in year one, 7.5% in year two and 10% per year thereafter, as was the 75% excess cash flow sweep.

Commitments are now due at 12 p.m. ET on Friday instead of on Tuesday, the source said, explaining that the deadline was accelerated as a result of demand at the revised terms.

The company's $200 million senior secured credit facility also includes a $75 million four-year ABL revolver that will be partially funded at closing.

Jefferies Finance is the lead arranger on the deal.

Proceeds will be used to help fund the acquisition of the company by Jefferies Capital Partners.

Pro forma leverage is 2.9 times, and equity will comprise 42% of capitalization.

Bourland & Leverich is a Pampa, Texas-based distributor of tubular goods serving U.S. onshore oil and gas producing regions.

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