Times of Oman reported that Dubai Gulf Oil set the interest rate it will pay on USD 785 million of loans it's seeking to back its acquisition of Houghton International Inc.

A USD 535 million first lien term loan will pay 4.5 % points more than the London interbank offered rate said the person who asked not to be identified because the information is private.

Libor a rate banks said that they can borrow in dollars from each other will have a 1.25% Gulf Oil is proposing to sell the loan at 99 % on the dollar the person said reducing proceeds for the company and boosting the yield to investors.

Lenders are being offered 1 year soft call protection of 101 cents meaning the company would have to pay one cent more than face value to refinance the debt during the first year.