Therakos reworks add-on term loan sizes, finalizes discounts

By Sara Rosenberg

New York, Dec. 13 - Therakos Inc. upsized its add-on first-lien term loan due Dec. 27, 2017 to $56.5 million from $46.5 million and downsized its add-on second-lien term loan due June 27, 2018 to $20 million from $25 million, according to a market source.

Also, the original issue discount on the first-lien loan firmed at 991/2, the low end of the 99 to 99½ talk, and the discount on the second-lien loan finalized at 99, the high end of the 99 to 99½ talk, the source said.

Pricing on the add-on first-lien loan is Libor plus 625 basis points with a 1.25% Libor floor and pricing on the add-on second-lien loan is Libor plus 1,000 bps with a 1.25% Libor floor, both in line with existing first- and second-lien loan pricing.

Financial covenants include maximum total leverage and minimum interest coverage ratios.

Bank of America Merrill Lynch and Jefferies Finance LLC are the lead arrangers on the deal.

Proceeds will be used to fund a distribution to shareholders, the size of which was increased due to the overall $5 million upsizing to the loans, the source added.

Recommitments were due at 1:30 p.m. ET on Friday.

Therakos is a Raritan, N.J.-based provider of integrated systems for delivering extracorporeal photopheresis, a therapy used to treat niche but serious disease states arising from immune system imbalances.

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