Keane Group launches $350 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, May 7 – Keane Group Holdings LLC launched on Monday its $350 million seven-year senior secured term loan (B3/BB-) with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has a step-down to Libor plus 375 bps at less than 0.5 times net leverage, and step-ups to Libor plus 425 bps at 1 times net leverage to less than 1.5 times net leverage, to Libor plus 450 bps at 1.5 times net leverage to less than 2 times net leverage and to Libor plus 475 bps at 2 times net leverage, the source said.

Also included in the term loan is 101 soft call protection for six months.

Barclays is the left lead arranger on the deal and the administrative agent.

Commitments are due at noon ET on May 17, the source added.

Proceeds will be used to repay the company’s existing term loan, for general corporate purposes, including to finance potential future shareholder distributions, and to pay related fees and expenses.

Keane Group is a Houston-based provider of integrated well completion services.

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