Harvey Gulf firms discount on $600 million term loan B at 98½

By Sara Rosenberg

New York, June 14 - Harvey Gulf International Marine LLC finalized the original issue discount on its $600 million seven-year covenant-light term loan B at 981/2, the tight end of the revised 98 to 98½ talk and wide of initial talk of 99 to 991/2, according to a market source.

Pricing on the term loan B is Libor plus 450 basis points with a 1% Libor floor, and there is call protection of 102 in year one and 101 in year two.

Earlier, the term loan B was downsized from $750 million, pricing was raised from talk of Libor plus 325 bps to 350 bps and the call protection was sweetened from just 101 soft call for one year.

With the term loan downsizing, a $150 million five-year term loan A had been added to the capital structure with pricing of 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.

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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