Patterson Medical finalizes $330 million term B at Libor plus 475 bps

By Sara Rosenberg

New York, June 23 – Patterson Medical firmed pricing on its $330 million incremental covenant-light term loan B due August 2022 at Libor plus 475 basis points, the high end of revised talk of Libor plus 450 bps to 475 bps and up from initial talk of Libor plus 425 bps, according to a market source.

Also, the original issue discount on the term loan B was changed to 98 from revised talk of 99 and initial 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.

Recommitments were due at 2:30 p.m. ET on Thursday, the source added.

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

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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