Vantage Drilling trims term B to $350 million as bond deal upsized

By Sara Rosenberg

New York, March 21 - Vantage Drilling Co. reduced the size of its six-year term loan B (B3) to $350 million from $525 million and increased its senior secured bond offering to $775 million from $600 million, according to a market source.

Price talk on the term loan is unchanged at Libor plus 450 basis points with a 1.25% Libor floor and an original issue discount of 98 to 99.

Also, the term loan is still non-callable for two years.

Commitments for the term loan are due by 2 p.m. ET on Friday, the source said.

The company's now $550 million credit facility, down from $725 million, also includes a $200 million amended and restated revolving credit facility due April 25, 2017 that is priced at Libor plus 350 bps.

Citigroup Global Markets Inc., BofA Merrill Lynch, Deutsche Bank Securities Inc., Jefferies Finance LLC and RBC Capital Markets LLC are the joint lead arrangers on the term loan. Royal Bank of Canada is the administrative agent on the revolver.

Proceeds from the term loan and notes will be used refinance existing 11½% senior secured notes due 2015.

Vantage Drilling is a Houston-based offshore drilling contractor.

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