Oxbow Carbon shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, Dec. 15 – Oxbow Carbon LLC downsized its covenant-light first-lien term loan B (B1/BB-) to $450 million from $575 million and upsized its first-lien term loan A (B1/BB-) to $225 million from $100 million, according to a market source.

Also, pricing on the term loan B firmed at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and the original issue discount tightened to 99.75 from 99.5, the source said.

The term loan B has a step-down to Libor plus 350 bps at 2.5 times leverage.

In addition, the company set pricing on its $175 million covenant-light second-lien term loan (Caa1/B) at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, and tightened the discount to 99 from 98.5, the source continued.

As before, the term loan B has a 0% Libor floor and 101 soft call protection for one year, and the second-lien term loan has a 1% Libor floor and 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.

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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