Frac Tech's new facility includes $200 million delayed-draw term loan

By Sara Rosenberg

New York, April 21 - Frac Tech International LLC's new bank debt (B2/B+) includes a $200 million delayed-draw term loan in addition to the $1.5 billion five-year term loan B, according to a market source.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead banks on the deal that launched with a meeting this past Wednesday.

Indicative talk on the term loan B emerged earlier at Libor plus 500 basis points with a 1.5% Libor floor and an original issue discount of 98 to 99, and 101 soft call protection for one year. However, official talk on the deal has not yet been announced, the source said. It is expected that the official talk will come out during the week of April 25.

Proceeds will be used to help fund the acquisition of a controlling stake in Frac Tech Services LLC by an investor group including Temasek Holdings Ltd. and RRJ Capital from the Wilks family, and to fund a dividend payment to Chesapeake Energy Corp. which owns 30% of Frac Tech.

Cisco, Texas-based Frac Tech is an oilfield service company.

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