UBS has launched syndication of a five-year, $125 million revolver and a six-year, $90 million term loan for Basic Energy Services. Pricing on the revolver is LIBOR plus 1 3/4% with a leverage-based grid and LIBOR plus 2 1/4% on the term loan. The company is controlled by DLJ Merchant Banking Partners.
The company has set the size for an initial public offering at 12.5 million shares. Of those shares, the company will offer five million shares and stockholders will offer 7.5 million. Goldman Sachs, Credit Suisse First Boston, Lehman Brothers, UBS, Deutsche Bank, Raymond James and RBC Capital Markets were listed as underwriters for the offering, in a filing with the Securities and Exchange Commission. The company wrote in the filing that it intends to use $70 million of net proceeds from the offering to repay a portion of its term loan.
Based in Midland, Texas, Basic Energy provides a range of well site services to oil and gas drilling and producing companies. It also provides well site construction services in Texas, New Mexico, Oklahoma, Louisiana and the Rocky Mountain states. Alan Krenek, v.p., cfo and treasurer, could not be reached, nor could a spokesman for DLJ.