Osmose moves funds between first- and second-lien loans, sets spreads

By Sara Rosenberg

New York, Aug. 17 – Osmose Holdings upsized its seven-year first-lien covenant-light term loan to $285 million from $275 million and downsized its eight-year second-lien covenant-light term loan to $105 million from $115 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and pricing on the second-lien term loan finalized at Libor plus 775 bps, the tight end of the Libor plus 775 bps to 800 bps talk, the source said.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

The company’s $435 million credit facility also provides for a $45 million five-year revolver.

Goldman Sachs Bank USA and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Kohlberg & Co.

Osmose is a Tyrone, Ga.-based service provider safeguarding utility infrastructure.

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