Press Ganey flexes $1.25 billion term loan to Libor plus 350 bps

By Sara Rosenberg

New York, July 22 – Press Ganey Associates Inc. (Emerald TopCo Inc.) reduced pricing on its $1.25 billion seven-year first-lien term loan to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99.5 from 99, and the MFN was changed to 50 bps for 12 months from 75 bps, the source said.

In addition, ratio debt was modified to unlimited investment amounts up to 0.5x less than closing date first-lien net leverage from 0.25x, and a clause was removed from the inside maturity exception.

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

The company’s $1.5 billion of credit facilities (B2/B) also include a $250 million revolver.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets and Deutsche Bank Securities Inc. are the arrangers on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP and Ares Management Corp.

Other funds for the transaction will come from $453 million of second-lien notes that were privately placed with Goldman Sachs Merchant Banking Division and GIC.

Closing is expected in the third quarter, subject to customary approvals.

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

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