Quicksilver launches $600 million term loan at Libor plus 575 bps

By Sara Rosenberg

New York, May 29 - Quicksilver Resources Inc. launched on Wednesday its $600 million six-year second-lien covenant-light term loan (B2/CCC+) with price talk of Libor plus 575 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has soft call protection of 102 in year one and 101 in year two.

Commitments are due on June 5, the source added.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners on the deal, with Credit Suisse and JPMorgan the co-lead arrangers.

Co-managers on the loan include UBS Securities LLC, TD Securities (USA) LLC, Scotia Capital (USA) Inc., CIBC World Markets Corp. and RBS Securities Inc.

Proceeds will be used to help fund a tender offer for the company's 8¼% senior notes due 2015, 11¾% senior notes due 2016 and 7 1/8% senior subordinated notes due 2016, and for general corporate purposes.

Other funds for the transaction are expected to come from up to $675 million of new senior unsecured notes and up to $200 million of new senior second-priority secured notes.

Closing on the loan is targeted to occur on June 21.

Quicksilver Resources is a Fort Worth, Texas-based natural gas and oil exploration and production company.

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