Seventy Seven Energy sets discount on $400 million term B at 99½

By Sara Rosenberg

New York, June 12 – Seventy Seven Energy Inc. firmed the original issue discount on its $400 million seven-year covenant-light term loan B (Ba1/BB+) at 99½, the tight end of the 99 to 99½ talk, and trimmed the Libor floor to 0.75% from 1%, according to a market source.

Pricing on the term loan is still Libor plus 300 basis points, but now there is a step-down to Libor plus 275 bps at less than 2.75 total leverage.

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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