Southern Pacific Resource Corp., the Calgary-based oil and gas company, is seeking a $275-million term loan to help finance its STP-McKay oil-sands project, according to a person familiar with the negotiations. Credit Suisse Group AG and Royal Bank of Canada are arranging the second-lien loan and initiated talks with lenders Friday, said the person, who declined to be identified because the terms are private. Toronto-Dominion Bank and Bank of Montreal are joint bookrunners for the transaction. Southern Pacific proposed to pay an interest rate of 9.25 percentage points more than the London interbank offered rate, the person said. Libor, the rate banks charge to lend to each other, will have a 2 percent floor. Southern may issue the loan at 97¢ on the dollar, the person said, reducing proceeds for the company and boosting the yield for investors.