Jan. 12 (Bloomberg) -- CCS Corp., a provider of energy and environmental waste management services, set the interest rate on a $200 million term loan it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The debt, due in November 2014, will pay interest at 5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks charge to lend to each other, will have a 1.5 percent floor.
CCS Corp. is proposing to sell the loan at 98 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Deutsche Bank AG and Goldman Sachs Group Inc. are arranging the financing for the Calgary-based company.
Mandy Dinning, manager of public affairs for CCS, declined to comment.
The company will use the proceeds to repay amounts outstanding on a $500 million revolving line of credit due in November 2013, the person said. The revolver pays interest at 3 percentage points more than the Libor, according to data compiled by Bloomberg.
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