Osmose Holdings to launch $400 million credit facility on Wednesday

By Sara Rosenberg

New York, Nov. 6 - Osmose Holdings Inc. is set to hold a conference call at 11 a.m. ET on Wednesday to launch a proposed $400 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $45 million five-year revolver, a $315 million six-year first-lien covenant-light term loan and a $40 million delayed-draw for three months term loan, the source said.

Price talk on the term loan is Libor plus 550 basis points with a 1.25% Libor floor and an original issue discount that is still to be determined, the source continued.

The term loan has 101 soft call protection for one year.

Proceeds will be used to refinance existing debt, to fund a dividend and to finance an acquisition.

Osmose is a Buffalo, N.Y.-based provider of wood preservation technology as well as utility and railroad asset management.

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