Halyard Health launches $390 million term loan B at Libor plus 350 bps

By Sara Rosenberg

New York, Sept. 18 – Halyard Health Inc. launched on Thursday its $390 million seven-year senior secured term loan B with price talk of Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99 to 99½, according to a market source.

The term loan B has 101 soft call protection for one year and a ticking fee of half the spread from days 31 to 60 and the full spread thereafter, the source said.

Commitments are due on Oct. 2.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal (Ba2/BB).

In addition to the term loan, the company plans on getting a $250 million senior secured revolver that is anticipated to be undrawn at closing.

Proceeds will be used to help fund the spinoff of the company from Kimberly-Clark Corp.

Other funds for the transaction will come from about $250 million of senior unsecured notes.

The spinoff is expected to be completed at the end of October.

Halyard Health is an Alpharetta, Ga.-based health care company focused on preventing infection, eliminating pain and speeding recovery.

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