Medline sets U.S. term loan at $7.27 billion, finalizes euro OID

By Sara Rosenberg

New York, Sept. 30 – Medline Industries upsized its U.S. seven-year term loan to $7.27 billion from a revised amount of $6.5 billion and an initial amount of $6 billion, according to a market source. The move was expected as the company had revealed on Wednesday that it was shifting $1.5 billion out of its unsecured notes offering to its senior secured notes offering and U.S. term loan B, with the final split to be determined.

In addition, the company firmed the original issue discount on its $500 million equivalent euro seven-year term loan at 99.75, the tight end of revised talk of 99.5 to 99.75 and tighter than initial talk of 99 to 99.5, the source said.

Pricing on the U.S. term loan is Libor plus 325 basis points with a 25 bps step-down at 4.25x net secured leverage, a 0.5% Libor floor and an original issue discount of 99.5.

The euro term loan is priced at Euribor plus 350 bps with a two 25 bps step-downs at 4.25x net secured leverage and 3.75x net secured leverage, and a 0% floor.

Both term loans have 101 soft call protection for six months.

Earlier in syndication, pricing on the U.S. term loan was reduced from talk in the range of Libor plus 350 bps to 375 bps, one step-down was removed and the discount firmed at the tight end of the 99 to 99.5 talk. Also, the euro term loan was downsized from $1 billion equivalent, pricing was set at the low end of the Euribor plus 350 bps to 375 bps talk and one step-down was removed.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Morgan Stanley Senior Funding Inc., MUFG, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Wells Fargo Securities LLC, Bank of the West, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho, Nomura, RBC Capital Markets, Santander, Truist, ING, Societe Generale, Sumitomo, Bank of Nova Scotia and TD Securities (USA) LLC are the lead arrangers on the deal.

The company’s unsecured notes offering is sized at $2.5 billion, down from $4 billion originally, and its senior secured notes offering is sized at $4.5 billion, up from $3.77 billion originally.

Proceeds will be used to help fund the buyout of the company by Blackstone, Carlyle and Hellman & Friedman.

Closing is expected late this year, subject to regulatory approvals and customary conditions.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.