Keane cuts spread on $350 million term loan to Libor plus 375 bps

By Sara Rosenberg

New York, May 17 – Keane Group Holdings LLC reduced pricing on its $350 million seven-year senior secured term loan (B3/BB-) to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

Additionally, the pricing grid was changed to a step-down to Libor plus 350 bps, revised from Libor plus 375 bps, at less than 0.5 times net leverage, and step-ups to Libor plus 400 bps, changed from Libor plus 425 bps, at 1 times net leverage to less than 1.5 times net leverage, to Libor plus 425 bps, revised from Libor plus 450 bps, at 1.5 times net leverage to less than 2 times net leverage and to Libor plus 450 bps, changed from Libor plus 475 bps, at 2 times net leverage, the source said.

Furthermore, the 50 bps MFN was set for life, instead of having a 12 months sunset.

The term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.