Patterson Medical flexes $300 million term B to Libor plus 425 bps

By Sara Rosenberg

New York, Aug. 13 – Patterson Medical raised pricing on its $300 million seven-year covenant-light term loan B (Ba3) to Libor plus 425 basis points from Libor plus 375 bps, according to a market source.

Additionally, the original issue discount on the term loan was set at 99, the wide end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Barclays and Jefferies Finance LLC are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners from Patterson Cos. Inc. for gross proceeds of around $715 million in cash.

Other funds for the transaction will come from equity.

Closing is expected in the fiscal second quarter, subject to regulatory requirements and other customary conditions.

Patterson Medical is a distributor of rehabilitation supplies and non-wheelchair assistive patient products to the physical and occupational therapy markets.

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