UBS has been selected for the sole bookrunner spot over Credit Suisse First Boston on a $170 million credit for Basic Energy Services, a portfolio company of the CSFB Private Equity arm, according to a market source. Exact reasons for the UBS selection could not be confirmed, but a banker said UBS had been working closely with Global Energy Partners, the CSFB Private Equity affiliate in Houston that oversees Basic Energy. "Historically, CSFB has led most of their merchant bank deals," he added. UBS officials declined to comment and CSFB bankers and a spokesman did not return calls. A CSFB Private Equity spokeswoman declined comment.
The deal, which is scheduled to hit the market Wednesday, will go toward refinancing an existing GE Capital-led facility and financing some small acquisitions. The credit includes a six-year, $130 million "B" loan and a five-year, $40 million revolver. Pricing on the institutional piece is set at LIBOR plus 31/2% and at LIBOR plus 3% on the revolver. Basic Energy provides well-site services to oil and gas drilling and producing companies.
The company's $84 million existing credit includes a $22 million revolver, a $30 million "A" loan, a $20 million "B" loan and a $12 million "C" loan. Pricing on this deal is in the LIBOR plus 31/2% range. Other lenders on this deal along with GE include LaSalle Bank, Hibernia National Bank and First American National Bank. The banker said GE had bid for the lead role as well. A GE banker could not be reached late last week. Ronald McClung, cfo of Basic Energy, was out of the office last week and could not be reached, while another company official did not return calls.