Tervita Said to Set Rate on $500 Million Loan to Refinance Debt

Tervita Corp., a provider of environment management services to the oil and gas industry, set the rate it will pay on a $500 million term loan B it’s seeking to refinance debt, according to a person with knowledge of the transaction.

The debt will pay interest at 5.25 percentage points to 5.5 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 1.25 percent floor. Tervita 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, according to the person.

Royal Bank of Canada, Goldman Sachs Group Inc., Deutsche Bank AG and Toronto Dominion Bank are arranging the financing and commitments are due Feb. 8, the person said.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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