Superior Energy Services has tapped the loan market for a $110 million credit that refinances debt and will support the company's acquisition strategy. The credit includes a $35 million, five-year term loan that backs the company's recent acquisition of Premier Oilfield Services for about $31.5 million, explained Robert Taylor, Superior Energy's cfo. In addition, Superior Energy has a $75 million, three-year revolver available for acquisitions, working capital needs and capital expenditures. "We are a business that has grown through the result of some strategic acquisitions and have various sources of capital," he noted, adding that one of the immediate sources of capital is the company's revolver. The credit also has a $25 million accordion feature, which allows the company to bring on an extra lender without amending the facility.
The new facility is priced on a grid tied to leverage and currently carries a LIBOR plus 21Ž2% spread across both tranches. The pricing is the same on the company's former credit, which included a $12 million term loan and $75 million revolver at the time of refinancing. The company also has a $22 million loan that is a one-off financing, collateralized by marine and coiled tubing equipment. Although the $22 million loan is a part of a separate facility, the same group of banks participates on the facility, said Taylor.
Superior Energy has for the most part the same group of lenders since October 2000. Bank One leads the new credit facility, noted Taylor. Wells Fargo Bank and Whitney National Bank hold the roles of syndication agent and documentation agent, respectively. "We selected these banks because [they] are familiar with the oil and gas industry, specifically as it relates to the Gulf of Mexico...We think it's important for our lenders to understand our business," said Taylor.