Petco Animal Supplies discloses structure and talk with launch; MedAssets sets meeting

By Sara Rosenberg

New York, Jan. 5 – In the loan market on Tuesday, Petco Animal Supplies Inc. came out with structure and price talk on its new deal in connection with its bank meeting, and MedAssets Inc. nailed down timing on the launch of its credit facility.

Also in the primary, Stratose Inc. emerged with plans to bring a new first-lien term loan to market.

Petco details revealed

Petco held its bank meeting in the late morning, at which time lenders were presented with a $2.5 billion seven-year covenant-light senior secured first-lien term loan B (B1/B) talked at Libor plus 450 basis points with a 1% Libor floor, an original issue discount of 98.5 to 99 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on Jan. 14, the source said.

The company’s $3 billion credit facility also includes a $500 million asset-based revolver.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Nomura and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by CVC Capital Partners and Canada Pension Plan Investment Board from TPG and Leonard Green & Partners for roughly $4.6 billion.

Closing is expected in late January, subject to customary conditions.

Petco is a San Diego-based specialty retailer of pet food, supplies and services.

MedAssets timing surfaces

MedAssets set a bank meeting for noon ET on Wednesday to launch its previously announced $1.73 billion senior secured credit facility, a market source said.

The facility consists of a $100 million revolver, a $1.13 billion first-lien term loan and a $500 million second-lien term loan.

Barclays, Morgan Stanley Senior Funding Inc., Macquarie Capital (USA) Inc. and Golub Capital Markets LLC are leading the debt that will be used with about $1,238,000,000 in equity to fund the buyout of the company by Pamplona Capital Management for $31.35 per share, or about $2.7 billion.

Pamplona will combine MedAssets’ Revenue Cycle Management segment with Precyse, a Pamplona-owned company that provides health information management services, technology and education.

Closing is expected this quarter, subject to regulatory approvals, expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, MedAssets’ stockholder approval and other customary conditions.

MedAssets is an Alpharetta, Ga.-based health care performance improvement company.

Stratose on deck

Stratose plans to hold a bank meeting at 10 a.m. ET on Thursday to launch a $265 million first-lien term loan, according to a market source.

SunTrust Robinson Humphrey Inc., Capital One and BMO Capital Markets are leading the loan that will be used to help refinance existing debt and fund an add-on acquisition.

The company is also getting a second-lien term loan that was privately placed, the source remarked.

Closing is expected late this month.

Stratose is an Atlanta-based provider of healthcare cost containment solutions for medical, dental and workers’ compensation payers, third-party administrators, self-funded entities and risk-bearing providers.

© 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.