W&T Offshore talks $300 million second-lien term loan at 9%, OID 99

By Sara Rosenberg

New York, May 4 – W&T Offshore Inc. is talking its $300 million five-year second-lien term loan (B+) at a fixed rate of 9% with an original issue discount of 99, for a yield of 9.25%, according to a market source.

The loan is non-callable for two years. First call is at 50% coupon, the source said.

There is a 101 investors put at a change-of-control.

If more than $50 million of W&T Offshore’s 2019 senior notes remain outstanding 30 days prior the maturity of the second-lien loan, it is required to make an offer to purchase the loan.

Morgan Stanley Senior Funding Inc., TD Securities (USA) LLC, Wells Fargo Securities LLC, Scotiabank, Natixis, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

Commitments were due at the end of the day on Monday and allocations are targeted for Tuesday, the source added.

Proceeds will be used to repay a reserve-based facility.

W&T Offshore is a Houston-based oil and natural gas producer.

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