MMM Holdings increases term loan B amount to $475 million

By Sara Rosenberg

New York, Oct. 23 - MMM Holdings Inc. upsized its term loan B to $475 million from $450 million, according to a market source.

Pricing on the loan remained at Libor plus 825 basis points with a 1.5% Libor floor and an original issue discount of 98.

The loan has soft call protection of 102 in year one and 101 in year two.

Amortization is 10% per annum.

Financial covenants include a maximum total leverage ratio, a minimum fixed charge coverage ratio and a minimum net worth requirement.

There is a 75% excess cash flow sweep.

The company's now $505 million five-year credit facility (B2/B+), up from $480 million, also includes a $30 million revolver.

Recommitments were due on Tuesday, the source added.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Jefferies & Co. are leading the deal.

Proceeds will be used to refinance existing debt and to fund a dividend, the size of which was increased as a result of the term loan B upsizing.

MMM is a Medicare Advantage insurer in Puerto Rico.

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