Opti Canada seeks term B amendment to permit new notes and revolver, increase pricing

By Sara Rosenberg

New York, Nov. 17 - Opti Canada Inc. launched an amendment to its $450 million term loan B to private side investors on Wednesday, with the public side invited to listen to the call on Friday, asking for permission to complete its refinancing proposal and augment pricing on the B loan by 25 basis points, according to a market source.

Under the amendment, the term loan B spread would be raised to Libor plus 200 bps from Libor plus 175 bps, the source said.

In addition, some covenants would be tweaked, the source added.

As was previously reported, Opti is looking to issue up to $1 billion of high-yield senior secured notes and get a new C$500 million revolving credit facility.

Proceeds from the notes and revolver will be used to retire outstanding amounts under the company's existing C$900 million project credit facility, fund its share of costs associated with phase 1 of the Long Lake Project and fund its upfront development costs for phase 2.

The company is also working on a C$200 million bridge credit facility that will ensure continued access to the its existing project credit facility until the issuance of the senior secured notes and will terminate at that time.

RBC Capital Markets and TD Securities are the lead banks on the term loan B amendment and the proposed revolver, with RBC the left lead on the amendment and TD the left lead on the revolver.

Opti is a Calgary, Alberta-based company focused on developing the fourth integrated oil sands project in Canada, the Long Lake Project, in a 50/50 joint venture with Nexen Inc.

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