Houston Fuel Oil sets $550 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, July 30 – Houston Fuel Oil Terminal Co. firmed pricing on its $550 million seven-year covenant-light term loan B at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

In addition, the original issue discount on the term loan was revised to 99˝ from 99, the source said.

The term loan still has a 1% Libor floor, 101 soft call protection for one year and amortization of 1% per annum.

The company’s $625 million senior secured credit facility (Ba2) also includes a $75 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

Morgan Stanley Senior Funding Inc., Deutsche Bank Securities Inc. and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance Prudential notes, an existing revolver and term loan borrowings.

Houston Fuel (formerly Buffalo Gulf Coast Terminals LLC) is a Houston-based marine terminal for storage of residual fuel oil and crude oil.

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