CCS Income Trust sets structure on C$1.9 billion facility ahead of launch

By Sara Rosenberg

New York, Oct. 19 - CCS Income Trust revealed details on the structure of its C$1.9 billion senior secured credit facility as the deal is getting ready to launch with a bank meeting at the W Hotel in New York on Monday that will start at 1 p.m. ET, according to a market source.

Goldman Sachs and Deutsche Bank are the lead banks on the deal, with Goldman the left lead.

The facility consists of a C$500 million six-year revolver, a C$1.3 billion seven-year first-lien term loan and a C$100 million seven-year delayed-draw term loan, the source said.

The term loan and delayed-draw term loan will be funded in U.S. dollars and the revolver will be divided between Canadian and U.S. dollars, the source added.

There will be a senior secured leverage covenant in the credit agreement.

Proceeds will be used to help fund the buyout of the company for roughly C$3.5 billion by an investor group led by David Werklund, founder, president and chief executive officer of CCS, and which includes CAI Capital Partners, Goldman Sachs Capital Partners, Kelso & Co., Vestar Capital Partners, British Columbia Investment Management Corp., Alberta Investment Management and O.S.S. Capital Management LP.

Other buyout financing will come from a C$600 million senior unsecured bond offering and about C$1.8 billion in equity.

The delayed-draw loan will be available for acquisitions.

Previously, based on an August SEDAR filing, it was expected that the credit facility would be sized at C$1.8 billion, with the difference being that the revolver was anticipated at C$400 million.

CCS Income Trust is a Calgary, Alberta-based provider of integrated and environmentally responsible services to upstream and downstream oil and gas companies in Canada and the United States.

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