| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers O > Headlines for Oxbow Carbon LLC > News item |
Oxbow Carbon trims spread on first- and second-lien term loans
By Sara Rosenberg
New York, July 17 - Oxbow Carbon LLC reduced pricing on its $350 million six-year covenant-light term loan B (Ba3/BB+) to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, and on its $350 million 61/2-year second-lien term loan (B2/BB-) to Libor plus 700 bps from talk of Libor plus 725 bps to 750 bps, according to sources.
Also, a step-down was added to the first-lien term loan to Libor plus 300 bps when first-lien leverage is 2 times and the original issue discount was tightened to 99½ from 99, sources said.
As before, both term loans have a 1% Libor floor, the second-lien loan has an original issue discount of 99, the first-lien loan has 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 $1.8 billion credit facility also includes an $800 million five-year revolver (Ba3/BB+) and a $300 million five-year term loan A (Ba3/BB+), both priced at Libor plus 250 bps.
Earlier this week, the first-lien term loan B was downsized from $500 million, the revolver was upsized from $600 million and the term loan A was increased from $250 million.
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.