State Class Tankers flexes $365 million loan to Libor plus 550 bps

By Sara Rosenberg

New York, June 18 - State Class Tankers reduced pricing on its $365 million seven-year covenant-light term loan B to Libor plus 550 basis points from talk of Libor plus 575 bps to 600 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99½ from 99, the source said.

As before, the loan has a 1.25% Libor floor and is non-callable for two years then at 102 in year three.

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.

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