Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers V > Headlines for Varel Holdings Inc. > News item |
Varel launches $160 million credit facility
By Sara Rosenberg
New York, Oct. 16 - Varel Holdings Inc. held a bank meeting on Tuesday to launch its proposed $160 million senior secured credit facility (B+), according to a market source.
Lehman is the lead bank on the deal.
The facility consists of a $140 million term loan and a $20 million revolver, with both tranches talked at Libor plus 375 basis points, the source said.
The term loan is being offered at an original issue discount of 97.
Proceeds will be used to help fund the buyout of the company by Arcapita Inc. from KRG Capital Partners for about $369 million.
Other buyout financing will come from $75 million in mezzanine debt and $173 million of equity.
Leverage is around 5.0 times.
Varel is a Carrollton, Texas, manufacturer of drill bits for the oil and gas, and mining and industrial industries.
© 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.