Stallion Oilfield upsizes term loan to $375 million on strong demand

By Sara Rosenberg

New York, June 17 - Stallion Oilfield Holdings Inc. increased the size of its five-year senior secured covenant-light term loan B (B3/B) to $375 million from $350 million due to strong market demand, according to a market source.

Also, the original issue discount on the loan firmed at 99, the tight end of the 98½ to 99 talk, the source said.

The loan is still priced at Libor plus 675 basis points with a 1.25% Libor floor and has hard call protection of 102 in year one and 101 in year two.

Amortization is 1% per annum, the source said.

Recommitments were due at 4 p.m. ET on Monday.

Bank of America Merrill Lynch and Jefferies Finance LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to redeem the remaining $134 million of the company's senior secured notes due 2015, to fund a portion of a roughly $241 million dividend to stockholders and for other corporate purposes.

The dividend was increased from roughly $217 million with the term loan B upsizing.

Closing is expected to occur on Wednesday, the source added.

Total debt to 2013 adjusted EBITDA is 2.2 times.

Stallion Oilfield 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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