UBS has adjusted the structure and cut the spread by 25 basis points on the credit backing International Coal Group's $768 million acquisition of Horizon Natural Resources Co. After being oversubscribed, the term loan was increased by $20 million to $175 million and pricing was reduced from LIBOR plus 3% to LIBOR plus 2 3/4%.
The $40 million synthetic letter of credit facility was cancelled and the revolver is being increased to $110 million from $50 million. A letters of credit subfacility under the revolver was increased by $40 million to $60 million. The revolver spread is tied to a grid that begins at LIBOR plus 2 1/2%, 25 bps lower than where it originally went out.
International Coal was formed by an investor group led by Wilbur Ross' WL Ross & Co., Contrarian Capital Management, Greenlight Capital, Stark Event Trading and Varde Partners. A UBS banker declined comment and a WL Ross official did not return calls.