Oxbow Carbon sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, July 9 - Oxbow Carbon LLC came out with price talk on its $500 million six-year covenant-light term loan B (Ba3/BB+) and $350 million 61/2-year second-lien term loan (B2/BB-) that launched with a bank meeting on Tuesday, according to market sources.

The first-lien term loan is talked at Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, sources said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $1.7 billion credit facility also provides for a $600 million five-year revolver (Ba3/BB+) and a $250 million five-year term loan A (Ba3/BB+), both talked at Libor plus 250 bps.

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.

BofA Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

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

© 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.