MEG Energy flexes $987.5 million term loan to Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 14 - MEG Energy Corp. increased pricing on its $987.5 million senior secured covenant-light term loan (Ba1) due March 2020 to Libor plus 275 basis points from Libor plus 225 bps, according to a market source.

In addition, the 101 soft call protection was extended to one year from six months, the source said.

As before, the loan has a 1% Libor floor and a par offer price.

The term loan has the potential to upsize by no more than $300 million.

Recommitments are due at noon ET on Friday.

Barclays is the left lead on the deal.

Proceeds will be used to reprice the existing term loan from Libor plus 300 bps with a 1% Libor floor and extend the maturity from March 2018.

Leverage is 1.9 times.

MEG Energy is a Calgary, Alta.-based pure play oil sands company.

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