Cepsa cuts spread on $605 million term loan B to Libor plus 475 bps

By Sara Rosenberg

New York, June 11 – Compania Espanola de Petroleos SAU (Cepsa) reduced pricing on its roughly $605 million term loan B (€540 million equivalent) (BB-/BB) to Libor plus 475 basis points from Libor plus 500 bps and added a step-down to Libor plus 450 bps based on leverage, according to a market source.

Furthermore, the original issue discount on the term loan was tightened to 99 from 98.5, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

HSBC Securities (USA) Inc., BNP Paribas Securities Corp., Citigroup Global Markets, Deutsche Bank Securities, RBC Capital Markets and Santander are the leads on the deal.

Commitments are due on Wednesday, the source added.

Proceeds will be used with equity to fund the acquisition of a significant minority interest in the company by the Carlyle Group from Mubadala Investment Co.

Closing is expected by year-end, subject to regulatory approvals.

Cepsa is a Madrid, Spain-based privately owned integrated oil & gas company.

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