Change Healthcare firms $5.1 billion term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 3 – Change Healthcare set pricing on its $5.1 billion seven-year covenant-light term loan B at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

Additionally, the original issue discount on the term loan B was modified to 99.75 from 99.5, the source said.

The loan still has a 1% Libor floor and 101 soft call protection for six months.

Earlier in syndication, the company upsized the term loan B from $4,865,000,000 and trimmed its senior unsecured notes offering to $1 billion from $1,235,000,000.

The company’s $5.6 billion credit facility also includes a $500 million revolver.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., RBC Capital Markets and SunTrust Robinson Humphrey Inc. are arrangers on the deal.

Proceeds will be used to refinance existing debt and to help fund the creation of the company through the merger of Change Healthcare Holdings Inc. and the majority of McKesson Technology Solutions.

Closing on the merger is expected in the first half of this year, subject to customary conditions.

Change Healthcare is a health care information technology company.

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