P2 Energy sets first-and second-lien term loan talk with launch

By Sara Rosenberg

New York, Oct. 25 - P2 Energy Solutions Inc. released price talk on its $220 million first-lien term loan and $110 million second-lien term loan with its Thursday bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 475 basis points with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps with a 1.25% Libor floor and a discount of 981/2, the source said.

The first-lien term 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 $355 million credit facility also includes a $25 million revolver.

Commitments are due on Nov. 8, the source added.

Jefferies & Co. is leading the deal.

Proceeds will be used to refinance an existing credit facility and pay a distribution to shareholders.

Total leverage is 5.7 times.

For the fiscal year ended Sept. 30, the company generated revenue of $147.8 million and adjusted EBITDA of $57.5 million.

A source previously told Prospect News that the company has experienced strong financial performance with revenue and EBITDA up 23% and 69% year over year, respectively.

P2, a Vista portfolio company, is a Denver-based provider of software and data solutions exclusively serving the upstream oil and gas industry.

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