Matador finalizes $200 million incremental term B issue price at par

By Sara Rosenberg

New York, Feb. 11 – Matador Bidco firmed the issue price on its fungible $200 million incremental term loan B (BB-/BB) due October 2026 at par, the tight end of revised talk of 99.75 to par and tight of initial talk of 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 475 basis points with a 0% Libor floor, in line with existing term loan B pricing.

Included in the incremental term loan is a ticking fee of half the spread from days 46 to 90 and the full spread thereafter.

The loan has a 1.1x debt service coverage ratio covenant and a six-month debt service reserve account requirement.

HSBC Securities (USA) Inc. is the physical bookrunner on the deal and the agent. TCG, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBC Capital Markets, Santander and Intesa are also bookrunners.

Proceeds will be used to fund a portion of a pre-agreed deferred purchase price to Mubadala.

Funding is expected in mid-May.

With the incremental loan, the term loan B will total $825 million.

The company also sought an amendment to its credit agreement to revise the debt incurrence and restricted payment provisions to facilitate the proposed transaction.

Lenders were offered a 5 bps amendment fee.

Carlyle is the sponsor.

Matador Bidco is a holding company that is a 38.5% shareholder in Cepsa, a privately held integrated energy company in Europe.

© 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.