Floatel sets $650 million term loan spread at Libor plus 500 bps

By Sara Rosenberg

New York, May 21 - Floatel International Ltd. firmed pricing on its $650 million six-year covenant-light first-lien term loan (B2/B) at Libor plus 500 basis points, the wide end of the Libor plus 475 bps to 500 bps talk, according to a market source.

Also, the loan now has hard call protection of 102 in year one and 101 in year two, with a 35% equity claw at par, revised from 101 soft call protection for one year, the source said.

The term loan still has a 1% Libor floor and an original issue discount of 99.

Furthermore, an excess cash flow sweep was added of 50% above 3 times leverage, 25% between 2.5 times to 3 times leverage and 0% below, and the MFN sunset was removed setting the 50 bps MFN for life, the source continued.

In addition, the $50 million free and clear accordion was eliminated, the accordion construct is subject to additional 3.5 times net leverage with a new build facility carved out at 4 times, dividends are now subject to 3 times net leverage pre an initial public offering and 3.5 times post an initial public offering, and annual appraisals will be provided.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the bookrunners on the deal.

Proceeds will be used to refinance existing debt.

Floatel is a Sweden-based owner and operator of offshore accommodation and construction support vessels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.