California Resources lifts term loan to $1.3 billion, cuts price talk

By Sara Rosenberg

New York, Nov. 13 – California Resources Corp. upsized its five-year term loan (B2/B) to $1.3 billion from $1 billion and reduced price talk to a range of Libor plus 475 basis points to 500 bps from Libor plus 550 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 98 from 97, the source said.

The term loan still has a 1% Libor floor, 102 call protection that steps down to par 90 days prior to maturity and no amortization.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Monday.

Proceeds will be used to refinance existing debt. Due to the upsizing, the company will repay its $200 million term loan A in full and $100 million of RBL borrowings, the source added.

California Resources is a Los Angeles-based oil and natural gas exploration and production company.

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