Quicksilver talks $700 million second-lien loan at Libor plus 500 bps

By Sara Rosenberg

New York, July 17 - Quicksilver Resources Inc. is talking its $700 million five-year second-lien term loan at Libor plus 500 basis points with a 3.25% Libor floor and an original issue discount of 971/2, according to a market source.

Pricing on the term loan will step up by 25 bps after two years.

The term loan is repayable at par for the first two years, then at 103 in year three, 102 in year four and 101 in year five.

Credit Suisse and JPMorgan are the lead banks on the deal that launched with a bank meeting on Wednesday, but didn't come out with price talk until Thursday.

Proceeds will be used to help fund the acquisition of producing, leasehold, royalty and midstream assets.

Other financing for the acquisition will come from $300 million of borrowings under the company's existing revolver and $307 million of common stock.

Under the acquisition agreement, Quicksilver is buying the assets that are associated with the Barnett Shale formation in northern Tarrant and southern Denton counties of Texas from various private parties, including Chief Resources LLC, Hillwood Oil & Gas LP and Collins and Young LLC for $1.307 billion.

The acquisition is scheduled to close on Aug. 8, subject to expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the satisfaction or waiver of other customary conditions.

Quicksilver is a Fort Worth, Texas-based natural gas and crude oil exploration and production 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.