Stallion Oilfield cuts term loan to $450 million, lifts pricing

By Sara Rosenberg

New York, Dec. 12 - Stallion Oilfield Holdings Inc. downsized its senior secured five-year first-lien term loan (B3/B) to $450 million from $500 million and increased pricing to Libor plus 750 basis points from Libor plus 650 bps, according to a market source.

The 1.25% Libor floor and original issue discount of 98 were left unchanged, and the debt is still non-callable for one year, then at 102 in year two and 101 in year three.

However, the loan now includes a maximum total leverage ratio, whereas before it was covenant-light, the source said.

Recommitments are due at noon ET on Thursday, the source added.

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

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

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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