Caelus Energy flexes second-lien term loan to Libor plus 750 bps

By Sara Rosenberg

New York, April 4 - Caelus Energy Alaska 03 LLC increased pricing on its $300 million second-lien covenant-light term loan to Libor plus 750 basis points from Libor plus 725 bps, according to a market source.

Also, the maturity of the term loan was shortened to six years from seven years, the source said.

The loan still has a 1.25% Libor floor, an original issue discount of 98 and is non-callable for one year, then at 102 in year two and 101 in year three.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BMO Capital Markets, Societe Generale and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Pioneer Natural Resources Alaska Inc. by Dallas-based Caelus Energy LLC from Pioneer Natural Resources Co., to prefund capital expenditures and for general corporate purposes.

The company is also getting a $115 million ABL facility that was fully subscribed and not marketed with the term loan.

Caleaus Energy Alaska is an oil and gas company on the northern slope of Alaska.

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