Ozburn-Hessey trims OID on first-lien to 983/4, second-lien to 97¾

By Sara Rosenberg

New York, April 7 - Ozburn-Hessey Holding Co. LLC reduced the original issue discount on its $275 million first-lien term loan (Ba3/B) to 98¾ from 98 and the discount on its $75 million second-lien term loan (B3/CCC+) to 97¾ from 97, according to a market source.

Pricing on the first-lien term loan was left unchanged at Libor plus 550 basis points with a 2% Libor floor, and pricing on the second-lien was left unchanged as well at Libor plus 850 bps with a 2% Libor floor.

As before, the first-lien term loan has 101 soft call protection for one year and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Ozburn-Hessey's $385 million credit facility also includes a $35 million revolver (Ba3/B) that is priced at Libor plus 525 bps.

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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