Trident Resources to launch $410 million term loan on Wednesday

By Sara Rosenberg

New York, May 18 - Trident Resources Corp. is scheduled to hold a bank meeting on Wednesday to launch its proposed $410 million four-year term loan, according to a market source.

Credit Suisse is the lead bank on the deal.

Price talk on the term loan is Libor plus 950 basis points with a 3% Libor floor and an original issue discount of 97, the source said.

The loan is non-callable for one year, then at 105 in year two, 104 in year three and 103 in year four.

Proceeds will be used to help fund the company's exit from Chapter 11.

The company has already received court approval of the disclosure statement for its plan of reorganization, and the plan confirmation hearing is scheduled for June 15.

As part of the reorganization plan, the company is looking to do a $200 million equity rights offering and holders of 2006 credit agreement claims and 2007 credit agreement claims will be entitled to purchase that stock.

Trident is a Calgary, Alta.-based natural gas production company.

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