Seitel pulls $275 million of term loans due to unfavorable conditions

By Sara Rosenberg

New York, June 5 - Seitel Inc. withdrew its $275 million of term loans (B3/B) from the primary market as a result of the recent volatility, according to a market source.

The debt was comprised of a $75 million five-year term loan A talked at Libor plus 725 basis points to 775 bps with a 1.25% Libor floor and an original issue discount of 97 and a $200 million six-year term loan B talked at Libor plus 875 bps with a 1.25% Libor floor and a discount of 97.

Both term loans had call protection of 103 in year one, 102 in year two and 101 in year three.

Initially the company was only seeking a $275 million term loan B that was talked at Libor plus 700 bps with a 1.5% Libor floor, a discount of 98 to 99 and call protection of 102 in year one and 101 in year two, but the tranche was later downsized with the addition of the term loan A and pricing and call protection were completely reworked.

Wells Fargo Securities LLC and Jefferies & Co. were leading the deal.

Proceeds were going to be used to repurchase the company's $275 million of senior notes due Feb. 14, 2014.

Seitel is a Houston-based provider of seismic services to the energy industry.

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