Details surface on Ozburn-Hessey $180 million credit facility ahead of Tuesday launch

By Sara Rosenberg

New York, July 15 - Structure on Ozburn-Hessey Logistics LLC's proposed $180 million credit facility (B2/B+) surfaced as the syndicate is gearing up to launch the deal via a Tuesday afternoon bank meeting, according to a market source.

The facility will be comprised of a $40 million five-year revolving credit facility and a $140 million seven-year term loan B, the source said.

Morgan Stanley and Bear Stearns are joint lead arrangers and joint bookrunners on the deal, with Morgan Stanley the left lead.

Proceeds from the term loan will be used to help fund a leveraged buyout of the company by Welsh, Carson, Anderson & Stowe.

The revolver will be undrawn at closing and will be available for general corporate purposes.

Welsh, Carson, Anderson & Stowe is putting in 63% of the money for the LBO consisting of $80 million of holding company mezzanine debt and $157 million of equity.

Following the transaction, senior leverage will be 31/2x and total leverage through the holding company will be 51/2x.

Ozburn-Hessey is a Nashville-based third-party logistics provider.

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