Waystar cuts spread on $825 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Sept. 19 – Waystar revised price talk on its $825 million seven-year first-lien term loan (B-) to a range of Libor plus 400 basis points to 425 bps from just Libor plus 425 bps and then finalized the spread at Libor plus 400 bps, according to a market source.

Also, the original issue discount on the term loan was set at 99.5, the tight end of the 99 to 99.5 talk, the source said.

In addition, pricing step-downs were removed from the term loan, the MFN was revised to 50 bps for life from 75 bps with a six-month sunset, and changes were made to incremental, restricted payments, investments, asset sales and EBITDA add-backs.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of a majority stake in the company by EQT VIII Fund and Canada Pension Plan Investment Board from Bain Capital Private Equity in a transaction that values Waystar at $2.7 billion. Bain Capital will retain a minority stake in the company.

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

Waystar, which was formed in 2017 through the combination of Navicure and ZirMed, is a provider of revenue cycle technology.

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