KCA Deutag sets spread on $375 million term loan at Libor plus 525 bps

By Sara Rosenberg

New York, May 13 - KCA Deutag firmed pricing on its $375 million six-year secured term loan (B3/B) at Libor plus 525 basis points, the tight end of the Libor plus 525 bps to 550 bps talk, according to a market source.

Also, the original issue discount on the term loan finalized at 99, the low end of the 98½ to 99 guidance, the source said.

The term loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc. and Lloyds Securities LLC are the leads on the deal.

Proceeds will be used to refinance existing bank debt and add a small amount of cash to the balance sheet.

Other funds for the transaction will come from $375 million of secured notes.

KCA Deutag is a Scotland-based drilling contractor, managing platform drilling rigs and owning and operating a fleet of jack-up, self-erect tender and land rigs.

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