Covis Pharma widens U.S. and euro first-lien term loans OID to 90

By Sara Rosenberg

New York, Feb. 11 – Covis Pharma changed the original issue discount on its $595 million five-year senior secured first-lien term loan B to 90 from revised talk of 93 and initial talk in the range of 98 to 99, according to a market source.

The company also revised the discount on its $350 million equivalent euro five-year first-lien term loan to 90 from 93, the source said.

Furthermore, the first-lien U.S. and euro MFN protection was revised to include a provision that to the extent either tranche is not fully subscribed, it will be subject to three months MFN at a discount of 90.

Pricing on the U.S. first-lien term loan is still SOFR+CSA plus 650 basis points with a 0.75% floor, and the debt still has CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for one year and amortization of 5% per annum.

As before, the euro term loan is priced at Euribor plus 650 bps with a 0% floor and has 101 soft call protection for one year and amortization of 2.5% in years one and two, 5% in three and 7.5% in years four and five.

Pricing on the company’s $312 million seven-year second-lien term loan was unchanged at SOFR+CSA plus 975 bps with a 1% floor.

Earlier in syndication, the U.S. first-lien term loan was upsized from a revised amount of $550 million and an initial size of $350 million, pricing was increased from SOFR+CSA plus 625 bps and the call protection was extended from six months. In addition, the euro term loan was added to the transaction, and the second-lien term loan was upsized from $300 million after being added after launch.

Barclays is the left lead on the deal and the administrative agent.

Final commitments are due at 8 a.m. ET on Monday with allocations to follow, the source added.

Proceeds will be used to refinance existing debt, including the debt incurred to fund the acquisition of products from AstraZeneca, and to pay fees and expenses.

The company’s plans for a U.S. secured notes offering for total notes proceeds of $850 million equivalent was eliminated upon the first upsizing to the U.S. first-lien term loan B and the addition of the second-lien term loan, and plans for a $350 million equivalent euro secured notes offering were terminated with the addition of the euro term loan.

Covis is a Zug, Switzerland-based pharmaceutical company with a focus on medicines in respiratory and hospital/critical care.

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