U.S. Shipping sets spread on $220 million term B at Libor plus 775 bps

By Sara Rosenberg

New York, April 5 - U.S. Shipping Corp. firmed pricing on its $220 million five-year senior secured term loan B (B3/B) at Libor plus 775 basis points, the tight end of the Libor plus 775 bps to 800 bps talk, according to a market source.

Also, the loan is now non-callable for one year, then at 102 in year two and 101 in year three, revised from non-callable for one year, then at 101 in year two, the source said.

The loan still has a 1.25% Libor floor and an original issue discount of 99.

Amortization is 1% per annum.

Commitments were due at 4 p.m. ET on Friday, the source added.

UBS Securities LLC and Bank of America Merrill Lynch are the bookrunners on the deal.

Proceeds will be used to refinance existing debt.

U.S. Shipping is an Edison, N.J.-based provider of long-haul marine transportation services.

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