Osum Production launches $210 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, July 10 – Osum Production Corp. launched on Thursday a $210 million six-year senior secured first-lien term loan (B3/B+) with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has soft call protection of 102 in year one and 101 in year two and maintenance covenants, the source said.

Commitments are due at noon ET on July 24.

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

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.

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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