United Pacific firms $450 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 28 – United Pacific finalized pricing on its $450 million seven-year first-lien term loan B (B2/B) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

In addition, the Libor floor on the term loan was revised to 1% from 0%, and some changes were made to documentation, the source said.

The term loan still has an original issue discount of 99, 101 soft call protection for six months, amortization of 1% per annum and a first-lien net leverage ratio covenant of 5.5x.

Of the total term loan B amount, $100 million is delayed-draw.

The delayed-draw ticking fee was modified to half the margin from days 31 to 60 and the full margin thereafter, from half the margin from days 61 to 120 and the full margin thereafter, the source continued.

Goldman Sachs Bank USA is the lead arranger on the deal.

Recommitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used to refinance existing debt, fund a dividend and finance acquisitions.

United Pacific is a Long Beach, Calif.-based operator of 415 gas stations and convenience stores throughout Southern and Northern California, Washington, Oregon, Colorado and Nevada.

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