Patterson Medical widens price talk on $330 million term loan B

By Sara Rosenberg

New York, June 22 – Patterson Medical revised price talk on its $330 million incremental covenant-light term loan B due August 2022 to Libor plus 450 basis points to 475 bps from Libor plus 425 bps, according to a market source.

Also, the original issue discount on the term loan B is now talked at 99, versus prior guidance of 99 to 99.5, the source said.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

The company will change the spread on its existing term loan to match the spread on the incremental term loan to create a fungible tranche, the source continued.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the debt.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to help fund the acquisition of Performance Health from Gridiron Capital.

Closing is expected this summer, subject to customary conditions.

Patterson Medical, a Madison Dearborn Partners portfolio company, is a Warrenville, Ill.-based distributor of rehabilitation, sports medicine and assistive patient products. Performance Health is an Akron, Ohio-based manufacturer and supplier of consumer branded health, wellness and self-care products.

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