Patterson Medical purchase by Madison Dearborn Partners closes

By Sara Rosenberg

New York, Aug. 28 – The buyout of Patterson Medical by Madison Dearborn Partners from Patterson Cos. Inc. for gross proceeds of around $715 million in cash has been completed, according to a news release.

To help fund the transaction, Patterson Medical got a $300 million seven-year first-lien covenant-light term loan B (Ba3/B) and a $135 million eight-year second-lien covenant-light term loan (Caa1/CCC+).

Pricing on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor, and it was sold at an original issue discount of 99. There is 101 soft call protection for one year.

During syndication, pricing on the first-lien term loan was lifted from Libor plus 375 bps, the issue price firmed at the wide end of the 99 to 99.5 talk, and the call protection was extended from six months.

The second-lien term loan was privately placed at pricing of Libor plus 775 bps with a 1% Libor floor, and has hard call protection of 102 in year one and 101 in year two.

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

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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