Oglebay sets Tuesday launch for $230 million credit facility

By Sara Rosenberg

New York, June 26 - Oglebay Norton Co. has scheduled a bank meeting for Tuesday to launch its proposed $230 million credit facility, according to a market source.

Previously it was known that the deal would launch this week but exact timing had been unavailable.

JPMorgan is the lead bank on the deal.

The facility consists of a $55 million five-year asset-based revolver talked at Libor plus 125 basis points with an undrawn fee of 37.5 basis points, a $140 million six-year term loan talked at Libor plus 275 basis points and a $35 million delayed-draw term loan with undrawn pricing of 137.5 basis points and drawn pricing talked at Libor plus 275 basis points, the release said.

Proceeds will be used to refinance the company's existing credit facility, to provide for the conversion of the company's convertible preferred stock and to provide for capital expansion.

The delayed-draw term loan, which will be available for draw for nine months, will serve as a backstop for opportunistic calls on the convertible preferred stock or, alternatively, for certain capital expenditures.

Financial covenants include maximum leverage, minimum fixed charge coverage and maximum capital expenditures. And, there will be a fixed asset coverage test of greater than 2.0 times at closing.

Oglebay Norton is a Cleveland-based provider of essential minerals and aggregates to a broad range of markets, from building materials and environmental remediation to the energy and metallurgical industries.

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