Oxbow Carbon reveals price talk on $750 million in term loans

By Sara Rosenberg

New York, Dec. 5 – Oxbow Carbon LLC came out with price talk on its $575 million covenant-light first-lien term loan B (BB-) and $175 million covenant-light second-lien term loan (B) with its lender meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 98.5, the source 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.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, PNC, Rabobank and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Commitments are due at noon ET on Dec. 14, the source added.

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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