DJO Finance upsizes term loan, trims pricing to Libor plus 325 bps

By Sara Rosenberg

New York, April 23 – DJO Finance LLC upsized its first-lien term loan (Ba3) to $1,035,000,000 from $1,005,000,000 as its second-lien notes offering was downsized to $1,015,000,000 from $1,045,000,000, according to a market source.

Also pricing on the term loan, as well as on a $20 million delayed-draw term loan (Ba3), was reduced to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, the source said.

All of the term loan debt still has a 1% Libor floor and an original issue discount of 99˝.

The term loan still has 101 soft call protection for six months.

The term debt is due in June 2020 and has a springing maturity 91 days inside the company’s third-lien notes if more than $50 million of notes remain outstanding.

Covenants include a net first-lien leverage ratio of no greater than 5.25 times.

In addition to the term loan, the company’s now $1,205,000,000 credit facility, up from $1,175,000,000, also provides for a $150 million asset-based revolver.

Recommitments were due at 4 p.m. ET on Thursday.

Allocations are targeted for Friday, the source added.

Macquarie Capital (USA) Inc. and Natixis are leading the deal, with Macquarie the administrative agent.

Proceeds will be used to refinance existing debt.

The company is also offering to exchange its existing $300 million of senior subordinated notes for $300 million of new third-lien senior notes.

DJO, a Blackstone portfolio company, is a Vista, Calif.-based provider of medical device solutions for musculoskeletal health, vascular health and pain management.

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