Encino launches $550 million second-lien loan at Libor plus 625 bps

By Sara Rosenberg

New York, Sept. 5 – Encino Acquisition Partners Holdings LLC launched on Wednesday its $550 million seven-year senior secured second-lien term loan (//BB-) with price talk of Libor plus 625 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Jefferies LLC, Citigroup Global Markets Inc. and BMO Capital Markets are the lead arrangers on the deal.

Commitments are due on Sept. 19, the source said.

Proceeds will be used to help fund the acquisition of the Ohio Utica Assets from Chesapeake Energy Corp. for about $2 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including the receipt of third-party consents.

Encino Acquisition is a Houston-based oil and gas company. The company was formed in 2017 through a partnership with Canada Pension Plan Investment Board.

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