Brand Energy offers LBO debt terms, Western Refining seeks loan for Northern Tier acqusition

November 13
12:40 AM 2013

Brand Energy & Infrastructure Services Inc recently proposed terms on an USD1.23 billion loan financing its buyout by private equity firm Clayton, Dubilier & Rice (CD&R). Separately, Texas-based Western Refining Inc. was looking to obtain USD550 million in debts for its acquisition of equity-owned interests in Northern Tier Energy LP.

A report by Bloomberg said Brand Energy proposed paying 3.5 percentage points to 3.75 percentage points above the London interbank offered rate or LIBOR for the seven-year loan.

CD&R, one of the oldest private equity investment firms in the world, agreed to acquire industrial service company Brand Energy from private equity firm First Reserve. Acquisition. Terms of the acquisition deal, however, had not been disclosed.

Meanwhile, Western Refining financed its Northern Tier Deal with a USD550 million term loan aside from USD245 million in assets. Western Refining will be paying USD775 million for Acon Investments and TPG Capital's stake in Northern Tier. In a statement released to Bloomberg, Western Refining said the debt was arranged by banking companies Bank of America Corp. and UBS AG.

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