US Shale Solutions talks $210 million notes and warrants units with 12˝% coupon at 97

By Paul A. Harris

Portland, Ore., Aug. 6 – US Shale Solutions, Inc. is in the market with a $210 million offering of notes and warrants units, according to an informed source.

The units are comprised of non-callable three-year senior secured notes with attached warrants to purchase shares amounting to 25% of the company’s outstanding common stock.

The Rule 144A and Regulation S for life deal via bookrunner Jefferies LLC is talked with a 12˝% coupon at 97.

Books close at 4 p.m. ET Thursday.

The deal features an excess cash flow offer at the greater of 75% of excess cash flow or $10 million per annum at 100%.

The deal also features maintenance covenants. Net debt to EBITDA is limited to a multiple of 4.25-times. In addition, capital expenditures will be limited to 40% of prior year EBITDA for the first year and 35% thereafter.

Proceeds will be used to finance the acquisitions of Ritter Construction, W. Pidhirney Welding, Culberson Construction, and J4 Fluid Services.

The prospective issuer is a full-service provider of infrastructure, fluids, and completion services to energy companies operating in unconventional resource plays in North America.

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