KCA Deutag launches $400 million term loan at Libor plus 575-600 bps

By Sara Rosenberg

New York, March 18 - KCA Deutag Finance S.a.r.l. held a bank meeting at 10 a.m. ET in New York on Monday to launch a $400 million six-year term loan that is talked at Libor plus 575 basis points to 600 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The loan has soft call protection of 102 in year one and 101 in year two, the source said.

J.P. Morgan Securities LLC, BofA Merrill Lynch, HSBC Securities (USA) Inc., Lloyds Securities LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Other funds for the refinancing will come from $860 million of senior secured notes.

Expected loan ratings are B3/B, the source added.

KCA Deutag is a Scotland-based provider of oilfield services.

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