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Drive DeVilbiss reworks first- and second-lien term loan sizes, OIDs
By Sara Rosenberg
New York, Dec. 19 – Drive DeVilbiss Healthcare upsized its first-lien term loan to $430 million from $417 million and its second-lien term loan to $167 million from $162 million, according to a market source.
Also, original issue discount talk on the first-lien term loan widened to 90 to 91 from 97.5, and discount talk on the second-lien term loan widened to 90 to 91 from 97, the source said.
Furthermore, the hard call protection on the second-lien term loan was changed to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two.
In addition, the maturity on the first-lien term loan was shortened to six years from seven years and the maturity on the second-lien term loan was shortened to seven years from eight years, the source continued.
Pricing on the first-lien term loan is still Libor plus 550 basis points with a 1% Libor floor, and pricing on the second-lien term loan is still Libor plus 925 bps with a 1% Libor floor.
As before, the first-lien term loan has 101 soft call protection for one year.
Amortization on the first-lien term loan is 2.5% in years one and two, 5% in years three and four and 7.5% in year five.
J.P. Morgan Securities LLC, Barclays, Citigroup Global Markets Inc., Capital One and HSBC Securities (USA) Inc. are the leads on the deal, with JPMorgan the left lead on the first-lien and Barclays the left lead on the second-lien.
Books close at 5 p.m. ET on Tuesday, the source added.
Proceeds will be used to help fund the purchase of a significant interest in the company by Clayton, Dubilier & Rice.
The incremental proceeds raised through the term loan upsizings will be used to pay transaction related fees and expenses.
Closing is expected this quarter.
Drive DeVilbiss is a Port Washington, N.Y.-based manufacturer of medical products.
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