Osmose shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, June 16 – Osmose Utilities Services Inc. upsized its seven-year first-lien term loan (B2/B) to $810 million from $760 million and downsized its privately placed second-lien term loan to $220 million from $270 million, according to a market source.

In addition, pricing on the first-lien term loan was reduced to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps and the 25 bps step-down at 0.5x inside closing date net first-lien secured leverage was removed, the source said.

Furthermore, the original issue discount on the first-lien term loan was revised to 99.5 from 99.

As before, the first-lien term loan has a 0.5% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, RBC Capital Markets, UBS Investment Bank and Societe Generale are the lead arrangers on the deal. Societe Generale is the administrative agent.

Commitments are due at 10 a.m. ET on Thursday, the source added.

Proceeds will be used to refinance the company’s existing capital structure and fund a distribution to shareholders.

EQT Infrastructure is the sponsor.

Osmose Utilities is a Peachtree City, Ga.-based provider of structural integrity management and resiliency services for utility and telecommunications infrastructure within the United States.

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