Templar talks $550 million term loan with 750-775 bps spread at 98

By Paul A. Harris

Portland, Ore., Sept. 3 – Templar Energy LLC detailed the structure of a $550 million seven-year senior secured second-lien term loan (B3/B-) at a Wednesday bank meeting, according to a market source.

The deal is talked with a Libor plus 750 to 775 basis points spread with a 1% Libor floor at 98.

It features hard calls at 102 and 101 in years one and two, respectively.

There is an accordion feature of $100 million plus the amount of any voluntary prepayments of the term loans plus additional amounts up to 3.75-times secured net leverage subject to a 50 basis points most favored nation provision with an 18-month sunset.

Commitments are due at 2 p.m. ET on Sept. 12, and the deal is expected to close on Sept. 19.

Administrative agent Citigroup Global Markets is the left lead arranger. Barclays, Goldman Sachs & Co., Morgan Stanley & Co. and Natixis are joint lead arrangers.

The Oklahoma City-based exploration and production company plans to use the proceeds to fund a portion of the company's acquisition of Newfield's Anadarko Basin Granite Wash assets.

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