Larchmont launches $275 million term loan at Libor plus 575-625 bps

By Sara Rosenberg

New York, July 11 - Larchmont Resources LLC launched on Thursday its $275 million senior secured first-lien term loan with price talk of Libor plus 575 basis points to 625 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan has soft call protection of 102 in year one and 101 in year two.

Commitments are due on July 25, the source added.

Barclays and Jefferies Finance LLC are the leads on the deal.

Proceeds will be used to refinance existing debt.

Net leverage is 3.3 times.

Larchmont Resources is a privately-held entity owned by Aubrey K. McClendon (AKM) and EIG Global Energy Partners that holds oil and gas interests that AKM purchased through his participation in the Chesapeake Energy Corp. Founders Well Participation Program.

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