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P2 Energy ups first- and second-lien term loan sizes, trims pricing
By Sara Rosenberg
New York, Oct. 29 - P2 Energy Solutions Inc. upsized its seven-year first-lien term loan (B+) to $310 million from $295 million and its 71/2-year second-lien term loan (CCC+) to $160 million from $155 million, according to a market source.
Also, pricing on the first-lien term loan was reduced to Libor plus 400 basis points from Libor plus 425 bps and a step-down was added to Libor plus 375 bps when net first-lien leverage falls below 3.5 times, and pricing on the second-lien term loan was trimmed to Libor plus 800 bps from Libor plus 825 bps, the source said.
In addition, the original issue discount on the first-lien term loan firmed at 991/2, the low end of the 99 to 99½ talk, and the discount on the second-lien loan was tightened to 99 from 981/2, the source continued.
As before, both term loans have a 1% Libor floor, the first-lien loan has 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.
The company's now $500 million credit facility, up from $480 million, also provides for a $30 million revolver (B+).
Recommitments were due by 5 p.m. ET on Tuesday, the source added.
Jefferies Finance LLC is leading the financing.
Proceeds will be used to help fund the buyout of the company by Advent International Corp. from Vista Equity Partners.
Other funds for the transaction will come from equity, the amount of which was reduced due to the term loan upsizings.
Closing is expected by year-end, subject to customary conditions.
P2 is a Denver-based provider of software, geospatial data and land management tools to the upstream oil and gas industry.
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