ATP Oil & Gas Corp.’s (ATPG) $155 million term loan to be used for general corporate purposes rose in initial trading, according to data provider Markit Group Ltd.
The debt, due in January 2015, began trading at 99.5 cents on the dollar, according to Markit. The loan was sold to investors at 99 cents, according to data compiled by Bloomberg.
Credit Suisse Group AG arranged the financing for the Houston-based company, the data show.
The loan pays interest at 7.25 percentage points more than the London interbank offered rate, with a 1.5 percent minimum on the benchmark, the data show. Libor, the rate at which banks say they can borrow in dollars from each other, serves as a reference for about $360 trillion of financial instruments worldwide.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.
To contact the reporter on this story: Michael Amato in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Faris Khan at email@example.com