Regent flexes $301 million first-lien term loan to Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 13 – Regent Energy Group Ltd. increased pricing on its $301 million covenant-light first-lien term loan to Libor plus 500 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was revised to 97 from 99½ and the 101 soft call protection was extended to one year from six months, the source said.

The first-lien term loan still has a 1% Libor floor.

The company is also getting a C$140 million covenant-light second-lien term loan that ended up being privately placed with a single investor at fixed-rate pricing of 10¼%.

At launch, talk on the second-lien loan had been Libor plus 725 bps with a 1% Libor floor and a discount of 99, which swaps to the equivalent of the Canadian fixed-rate 10¼%, another source remarked.

The company’s new credit facility also provides for a $75 million revolver.

Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are the lead banks on the deal, with Goldman left lead on the first-lien loan and Deutsche left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Advent International.

Regent Energy is a Nisku, Alta.-based oil recovery company.

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