Oxbow Carbon reduces term B size, lifts revolver and term A amounts

By Sara Rosenberg

New York, July 16 - Oxbow Carbon LLC downsized its six-year covenant-light term loan B (Ba3/BB+) to $350 million from $500 million, upsized its five-year revolver (Ba3/BB+) to $800 million from $600 million and lifted its five-year term loan A (Ba3/BB+) to $300 million from $250 million, according to sources.

The company's now $1.8 billion credit facility, up from $1.7 billion, still provides for a $350 million 61/2-year second-lien term loan (B2/BB-).

The revolver and term loan A are talked at Libor plus 250 basis points, the first-lien term loan B is talked at Libor plus 350 bps 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.

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.

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.

Commitments are due at noon ET on Wednesday, revised from Thursday, sources added.

Bank of America 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.

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