Ozburn-Hessey launches $385 million first- and second-lien facility

By Sara Rosenberg

New York, March 19 - Ozburn-Hessey Holding Co. LLC held a bank meeting on Friday to launch its proposed $385 million first- and second-lien credit facility, according to a market source.

The facility consists of a $35 million revolver talked at Libor plus 525 basis points, a $275 million first-lien term loan talked at Libor plus 550 bps and a $75 million second-lien term loan talked at Libor plus 850 bps, the source said.

The first- and second-lien term loans include a 2% Libor floor.

The first-lien term loan is being offered at an original issue discount of 98 and the second-lien loan is being offered at 97, the source remarked.

Call protection on the first-lien term loan is 101 soft call for one year, and on the second-lien term loan, it is 103 in year one, 102 in year two and 101 in year three.

Bank of America is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

Ozburn-Hessey is a Brentwood, Tenn.-based third-party logistics provider.

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