Press Ganey sets talk on $445 million first- and second-lien facility

By Sara Rosenberg

New York, March 29 - Press Ganey Associates Inc. revealed price talk on its $445 million credit facility with its Thursday morning bank meeting, according to a market source.

The $20 million revolver and $335 million first-lien term loan B are talked at Libor plus 400 basis points, and the $90 million second-lien term loan is talked at Libor plus 700 bps, the source said.

The revolver has no Libor floor, while the first- and second-lien term loans both have a 1.25% floor, the source continued.

Also, the revolver is offered with a 100 bps upfront fee, and the two term loans are offered at an original issue discount of 99.

The first-lien term loan has 101 soft call protection for one year, and the second-lien loan has hard call protection of 102 in year one and 101 in year two, the source added.

Commitments are due at the close of business on April 12.

Barclays Capital Inc., Goldman Sachs & Co. and GE Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Leverage is 3.9 times through the first-lien, 4.9 times total and 4.7 times net, the source added.

Press Ganey is a South Bend, Ind.-based provider of health care performance improvement services.

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