Seventy Seven Energy seeks $400 million term B at Libor plus 300 bps

By Sara Rosenberg

New York, June 9 – Seventy Seven Energy Inc. is in market with a $400 million seven-year covenant-light term loan B (Ba1/BB+) that is talked at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 99 to 99½, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due on Thursday.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used with $500 million of notes to fund the spinoff of the company from Chesapeake Energy Corp.

Seventy Seven is an Oklahoma City-based oilfield services company.

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