Focus to launch new credit facility Thursday that includes $209 million of term loans

By Sara Rosenberg

New York, Oct. 24 - Focus Corp. is scheduled to hold a bank meeting on Thursday to launch its proposed credit facility that includes $209 million of term loan debt and a revolver, according to a market source.

More specifically, the facility consists of a C$30 million revolver talked at Libor plus 325 basis points, a $146.5 million first-lien term loan talked at Libor plus 325 bps and a $62.5 million second-lien term loan talked at Libor plus 700 bps, the source said.

The second-lien term loan carries call premiums of 103 in year one, 102 in year two and 101 in year three.

There is also a $35.5 million mezzanine tranche.

Credit Suisse and BMO Capital Markets are joint bookrunners on the revolver and first-lien term loan, and Credit Suisse is the bookrunner on the second-lien and mezzanine tranche.

Proceeds will be used to fund the acquisitions of Sunbow Consulting Ltd., a provider of engineering and legal survey services to the land development industry, and DPH Engineering Inc., an engineering, procurement and construction management company.

In addition, proceeds will be used to pay a dividend to the company's equity partner, KRG Capital Partners.

Focus is an Edmonton, Alberta, consulting firm that provides a range of engineering, geomatics, planning and project management services to clients involved in oil and gas, oil sands, infrastructure, land development and environmental projects.

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