Stena launches $750 million term loan B at Libor plus 275-300 bps

By Sara Rosenberg

New York, Feb. 7 - Stena International SA held its bank meeting on Friday, launching a $750 million seven-year covenant-light senior secured term loan B with price talk of Libor plus 275 basis points to 300 bps with a 0.75% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal.

Security is a first priority lien on Drillmax and Carron Rigs, evidenced by a ship mortgage.

Proceeds will be used to refinance existing debt.

Commitments are due at 2 p.m. ET on Feb. 14, the source added.

Allocations are expected on Feb. 18 and closing is targeted for the week of Feb. 24.

Stena is a Gothenburg, Sweden-based company that has operations in shipping and offshore oil and gas exploration.

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