U.S. Gas & Electric revises pricing on $125 million second-lien loan

By Sara Rosenberg

New York, May 24 - U.S. Gas & Electric Inc. is now talking its $125 million five-year second-lien term loan at a fixed rate of 10% to 11% cash plus 3% to 4% PIK, for pricing in the 14% area, according to a market source.

Initially, the loan was being talked at Libor plus 750 bps to 850 bps with a 2% Libor floor.

As before, the term loan is being offered at an original issue discount of 98.

Call protection and covenants under the loan are to be determined, the source said.

Amortization on the loan is $10 million annually, and there is a 50% excess cash flow sweep.

Macquarie Capital is the lead arranger and bookrunner on the deal.

Proceeds will be used to refinance existing debt and back the acquisition of a similar company.

U.S. Gas & Electric, an MVC Capital portfolio company, is a provider of energy supply to commercial and residential consumers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.