Abaco Energy talks $175 million term loan at Libor plus 575 bps

By Sara Rosenberg

New York, Oct. 28 – Abaco Energy Technologies LLC released price talk on its $175 million seven-year term loan B (B3/B) at Libor plus 575 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

The company’s $200 million credit facility, which launched with a bank meeting on Monday afternoon, also provides for a $25 million revolver.

Included in the deal is a maximum total leverage ratio.

Commitments are due on Nov. 10, the source added.

Deutsche Bank Securities Inc. and BNP Paribas Securities Corp. are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Basin Tools Inc.

Abaco Energy, owned by Riverstone Holdings LLC, is a Houston-based oil field services company. Basin Tools is a Houston-based manufacturer, renter and seller of drilling motors and power sections for oil and gas drilling operations.

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