Credit Suisse First Boston is prepping a five-year, $175 million "B" loan for ATP Oil & Gas Corp. The loan is priced at LIBOR plus 81/2% and is being sold at 99. "It's being priced for the hedge fund market," one loan investor noted. The loan is refinancing ATP's existing $125 million revolver.
Last month, the company amended its credit agreement and indicated that it expected to need an extra $30 million in financing before the end of the first quarter of 2004. As part of the amendment, ATP issued warrants.
Some of the money from the refinancing is also going toward general corporate purposes, a source familiar with the deal said. ATP is an offshore oil and gas development and production company that operates in the Gulf of Mexico and North Sea. Albert Reese, Jr., ATP's cfo, declined comment.