Tervita launches $500 million term loan B at Libor plus 525-550 bps

By Sara Rosenberg

New York, Jan. 29 - Tervita Corp. launched its $500 million first-lien secured term loan B on Tuesday with price talk of Libor plus 525 basis points to 550 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year.

In addition to the term loan B, the company is looking to get a C$300 million revolver.

Commitments are due on Feb. 8, the source said.

RBC Capital Markets, Goldman Sachs & Co., Deutsche Bank Securities Inc. and TD Bank are the lead banks on the deal.

Proceeds from the credit facility and a $1.1 billion equivalent offering of senior secured notes will be used to repay all outstanding debt under the company's existing senior secured credit facility.

In addition, the company is negotiating an extension of its existing senior subordinated notes in connection with this refinancing.

Closing is expected before the end of February.

Tervita is a Calgary-based environmental management company for the oil and gas industry.

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