Oxbow Carbon to launch $1.7 billion credit facility on Tuesday

By Sara Rosenberg

New York, July 8 - Oxbow Carbon LLC set a bank meeting for 10 a.m. ET on Tuesday to launch a $1.7 billion credit facility, according to a market source.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal.

The facility consists of a $600 million five-year revolver (Ba3/BB+), a $250 million five-year term loan A (Ba3/BB+), a $500 million six-year covenant-light term loan B (Ba3/BB+) and a $350 million 61/2-year second-lien term loan (B2/BB-), sources said.

Price talk on the revolver and term loan A, which have already been launched to investors, is Libor plus 250 basis points, sources continued.

Amortization on the term loan B is 5% per year, while the term loan A amortizes at a rate of 10% per year.

The revolver and term loan A have a first-lien net leverage covenant and a total net leverage covenant.

Proceeds will be used to refinance existing debt.

Oxbow Carbon is a West Palm Beach, Fla.-based recycler of refinery and natural gas byproducts.

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