Frac Tech sets Wednesday meeting for $1.5 billion five-year term loan

By Paul A. Harris

Portland, Ore., April 19 - Frac Tech Services, LLC is planning a Wednesday lender meeting for its $1.5 billion five-year term loan B (B1//), according to a market source.

The talk is Libor plus 500 basis points, at a discount of 1 to 2 points. The deal features a 150 bps Libor floor and a 101 soft call.

The deal is part of a $1.75 billion financing led by Merrill Lynch.

Proceeds will be used to help fund the acquisition of a controlling stake in the company by Frac Tech International LLC from the Wilks family, and to fund a dividend payment to Chesapeake Energy Corp. which owns 30% of Frac Tech, a Cisco, Texas-based oilfield service company.

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