Oil States gets commitment for $900 million facility for MAC purchase

By Sara Rosenberg

New York, Oct. 15 - Oil States International Inc. plans on getting a new $900 million five-year senior secured credit facility to help fund its acquisition of the MAC Services Group Ltd., company officials said in a conference call on Friday.

Wells Fargo is the lead bank on the deal.

The facility is targeted to include a $400 million U.S. revolver, a $200 million Canadian revolver, a $200 million U.S. term loan and a $100 million Canadian term loan, officials said in the call.

Timing and price talk on the deal are still "up in the air," but the facility is anticipated to be pro rata, a market source told Prospect News.

Company officials, however, remarked on the call that pricing is expected to be around the 3% area "subject to syndication and flex terms" and assuming "proper execution."

Under the agreement, Oil States is buying MAC, a provider of remote accommodations for the natural resources industry in Australia, for A$3.90 per share in cash, or $643 million.

Other funds for the acquisition will come from cash on hand.

Closing on the transaction is expected to occur by the end of the first quarter of 2011, subject to approvals from MAC shareholders, the court approval of the Scheme and other regulatory approvals.

Pro forma total debt to LTM EBITDA is expected to be 2.3 times.

Oil States is a Houston-based diversified oilfield services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.