Osum Production to launch $210 million term loan on Thursday

By Sara Rosenberg

New York, July 8 – Osum Production Corp. is set to hold a bank meeting at 12:30 p.m. ET on Thursday to launch a $210 million six-year senior secured first-lien term loan, according to a market source.

Barclays and Goldman Sachs Bank USA are the bookrunners on the deal.

The loan will include maintenance covenants.

Proceeds will be used to help fund the acquisition of Orion Oil Sands Project from Shell Canada for C$325 million.

Other funds for the transaction will come from cash on hand as well as from existing shareholders.

Secured and total leverage is 2.7 times, the source added.

Closing is expected on or about July 31.

Osum Production is an indirectly wholly owned subsidiary of Osum Oil Sands Corp., a Calgary, Alta.-based private oil sands company.

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