Samson Investment Co., an oil and gas producer, is seeking to lower the rate on a $1 billion covenant-light term loan, according to a person with knowledge of the transaction.
The debt, due in September 2018, may pay interest at 4 percentage points more than the London interbank offered rate, down from 4.75 percentage points, said the person, who asked not to be identified because the terms are private. The minimum on the lending benchmark may be reduced to 1 percent, from 1.25 percent.
Credit Suisse Group AG is arranging the financing for the Tulsa, Oklahoma-based company, which is controlled by KKR & CO., Crestview Partners LP, NGP Energy Capital Management LLC and ITOCHU Corp., the person said. A lender call is scheduled for tomorrow at 10 a.m. in New York to discuss the deal, which is being offered at 100 cents on the dollar, the person said.
The original loan, obtained in September 2012 to refinance debt, was quoted at 100.875 cents on the dollar today, according to data compiled by Bloomberg.
Covenant-light loans don’t carry typical lender protections such as financial-maintenance requirements. In a term loan, money can’t be borrowed again once it’s repaid.