Endeavour flexes $255 million term loans to Libor plus 700 bps

By Sara Rosenberg

New York, Jan. 22 - Endeavour International Holding trimmed pricing on its $255 million of senior secured term loans due Nov. 30, 2017 to Libor plus 700 basis points from revised talk of Libor plus 750 bps, but it still came wide of initial talk of Libor plus 600 bps, according to a market source.

The debt, which is being sold as a strip, includes a $125 million term loan that is collateral for letters of credit and a $130 million term loan that is a procurement facility.

As before, the term loans have a 1.25% Libor floor and an original issue discount of 981/2, and are non-callable for one year, then at par, except for $98 million of the procurement facility, which can be called at par for six months.

Covenants include maximum leverage, minimum interest coverage and PV-10 to total debt.

Recommitments were due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Endeavour International is a Houston-based oil and gas exploration and production company.

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