Harvey Gulf trims term B to $600 million, adds $150 million term A

By Sara Rosenberg

New York, June 13 - Harvey Gulf International Marine LLC downsized its seven-year covenant-light term loan B to $600 million from $750 million and added a $150 million five-year term loan A to the capital structure, according to a market source.

Also, pricing on the term loan B was increased to Libor plus 450 basis points from talk of Libor plus 325 bps to 350 bps and the original issue discount guidance was revised to 98 to 98½ from 99 to 991/2, the source said.

Furthermore, the term loan B now has call protection of 102 in year one and 101 in year two, instead of just 101 soft call protection for one year.

The B loan still has a 1% Libor floor.

Price talk on the new term loan A is Libor plus 400 bps with a 1% Libor floor.

Amortization on the term loan B is 1% per annum, while the term loan A amortizes at a rate of 5% in year one, 10% in year two, 15% in year three, 20% in year four and 25% in year five.

Recommitments were due at 5 p.m. ET on Thursday, the source added.

Bank of America Merrill Lynch is the lead bank on the $750 million deal (B1/B).

Proceeds will be used to refinance existing debt and to fund the acquisition of vessels.

Harvey Gulf is a New Orleans-based marine transportation company that specializes in towing drilling rigs and providing offshore supply and multi-purpose support vessels for deepwater water operations.

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