Woodford Express talks $364 million term B at Libor plus 425-450 bps

By Sara Rosenberg

New York, Jan. 4 – Woodford Express LLC launched on Thursday its $364 million seven-year term loan B with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan B has 101 soft call protection for six months, amortization of 1% per annum and a debt service coverage ratio of 1.1 times, the source said.

In addition, the term loan B has an excess cash flow sweep of 100% if consolidated first-lien net leverage is more than 5 times, with steps, and a capex reserve of $50 million.

The company’s $389 million of senior secured credit facilities also include a $25 million five-year revolver.

Expected credit facilities ratings are B2/B+, the source continued.

Morgan Stanley Senior Funding Inc. is the bookrunner on the deal.

Commitments are due on Jan. 18, the source added.

Proceeds will be used to repay an existing credit facility, fund a distribution, fund a capex reserve, fund a debt service reserve and pay transaction-related fees and expenses.

Woodford Express, a portfolio company of Quantum Energy Partners, is a natural gas gathering and processing system in the core of the Scoop play of South Oklahoma’s Woodford Shale and Springer Shale.

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