Stallion Oilfield plans to launch $500 million term loan on Monday

By Sara Rosenberg

New York, Nov. 20 - Stallion Oilfield Holdings Inc. will be holding a bank meeting at 2:30 p.m. ET in New York on Monday to launch a $500 million senior secured five-year first-lien covenant-light term loan, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The term loan is talked at Libor plus 650 basis points with a 1.25% Libor floor and an original issue discount of 98, the source remarked.

Proceeds will be used to redeem the company's remaining $134 million of senior secured notes due 2015, to fund a portion of a roughly $385 million dividend, to fund transaction costs and for other corporate purposes.

In addition, the company is looking to upsize its asset-based credit facility to $75 million from $50 million through an amendment, a news release said.

Bank of America Merrill Lynch is the administrative agent on the asset-based loan.

Stallion is a Houston-based provider of wellsite support, completion, production and logistics services to oil and gas exploration and production companies, drilling contractors and other service companies.

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