Frontier Drilling seeks $125 million of incremental term debt

By Sara Rosenberg

New York, July 19 - Frontier Drilling is in market with $125 million of incremental term loan debt, according to a market source.

Morgan Stanley, Credit Suisse and Lehman are the lead banks on the deal, which launched on Wednesday.

The debt is comprised of a $25 million first-lien term loan add-on talked at Libor plus 325 basis points and a new $100 million second-lien term loan talked at Libor plus 650 bps, the source said.

Call protection on the second lien is 102 in year one and 101 in year two.

Proceeds will be used to finance a drill ship.

Frontier Drilling is a Denver-based provider of drilling operations.

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