Frontier Drilling discloses structure on $315 million credit facility ahead of launch

By Sara Rosenberg

New York, May 23 - Frontier Drilling came out with a structure on its $315 million credit facility as the deal is getting ready to launch with a bank meeting on Wednesday at 9:30 a.m. ET, according to a market source.

The facility consists of a $50 million five-year revolver, a $165 million seven-year term loan talked at Libor plus 275 to 300 basis points and a $100 million seven-year delayed-draw term loan talked at Libor plus 275 to 300 bps, the source said.

Morgan Stanley and Lehman are the lead banks on the deal, with Morgan Stanley the left lead.

Proceeds will be used to fund capital expenditures to upgrade two rigs, refinance existing indebtedness and for working capital and general corporate purposes.

Frontier Drilling is a Bergen, Norway, independent test and early production and drilling contractor.

© 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.