Front Line borrows $105 million for LBO Orbital Energy purchase

Chicago, Nov. 23 – Front Line Power Construction, LLC entered into a $105 million term loan on Nov. 17 with Alter Domus (US), LLC as administrative agent and collateral agent for the purchase of Front Line by Orbital Energy Group, Inc., according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is Libor plus 1,250 basis points, of which 250 bps may be paid in kind.

Starting June 30, 2022, the term loan will be repaid in consecutive quarterly installments of $262,500.

There are prepayment premiums, starting at 5% for the first 30 months of the term and declining to 1% in the final year of the term.

The loan matures Nov. 17, 2026.

Orbital Energy closed on its acquisition of Front Line on Nov. 17. Based in Houston, the company provides engineering, construction, maintenance and emergency response solutions to the power, utilities, and midstream markets.

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