Westway Group Inc. (WWAY:US), a provider of bulk liquid storage, set the rate it will pay on a $270 million term loan B to back its buyout by EQT Partners AB, according to a person with knowledge of the transaction.
The seven-year debt will pay interest at 4 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1 percent floor.
Westway is proposing to sell the loan at 99 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said.
Royal Bank of Canada is arranging the financing, which also includes a $30 million, five-year revolving line of credit, according to the person. Investors have until Feb. 20 to let the bank know whether they will participate in the deal.
EQT Partners purchased the New Orleans-based company for approximately $266 million, according to data compiled by Bloomberg.
Thomas Masilla, chief financial officer of Westway Group, didn’t immediately respond to an e-mail seeking comment.
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