State Class Tankers talks $365 million loan at Libor plus 575-600 bps

By Sara Rosenberg

New York, June 10 - State Class Tankers launched its $365 million seven-year covenant-light term loan B on Monday with price talk of Libor plus 575 basis points to 600 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The loan is non-callable for two years then at 102 in year three, the source said.

BofA Merrill Lynch, UBS Securities LLC and Barclays are the lead banks on the deal.

Proceeds will be used to help fund the construction of four product tankers, fund an 18-month interest reserve and put cash on the balance sheet.

Commitments are due on June 19, the source added.

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