SMB Shipping launches $60 million first-lien term loan at 99.5 OID

By Sara Rosenberg

New York, Nov. 7 – SMB Shipping Logistics LLC launched on Wednesday its fungible $60 million incremental first-lien term loan (B-) with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The spread and floor on the incremental first-lien term loan matches pricing on the company’s existing $434 million first-lien term loan.

Existing first-lien lenders who approve the amendment associated with the transaction will receive a 25 bps consent fee.

Commitments and amendment approvals are due on Nov. 14, the source said.

The company is also getting a $100 million incremental second-lien term loan that is being privately placed.

As part of the financing, pricing of the pro forma $225 million second-lien term loan (CCC) will be lowered to Libor plus 800 bps with a 1% Libor floor from Libor plus 875 bps with a 1% Libor floor, the source added.

Antares Capital, Deutsche Bank Securities Inc., Citizens Bank and J.P. Morgan Securities LLC are the joint lead arrangers on the debt.

Proceeds will be used to finance a distribution to existing shareholders.

SMB, a Ridgemont Equity Partners portfolio company, is a Dallas-based provider of small parcel and freight services to the small and medium-sized business market.

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