| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Drive DeVilbiss Healthcare > News item |
Drive DeVilbiss firms first- and second-lien term loans at 91 OID
By Sara Rosenberg
New York, Dec. 21 – Drive DeVilbiss Healthcare set the original issue discount on its $430 million six-year first-lien term loan at 91, the tight end of the revised talk of 90 to 91 but wide of initial talk of 97.5, according to a market source.
Also, the discount on the $167 million seven-year second-lien term loan finalized at 91, the tight end of the revised talk of 90 to 91 and wide of initial talk of 97, the source said.
Pricing on the first-lien term loan is Libor plus 550 basis points with a 1% Libor floor, and the debt 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.
Pricing on the second-lien term loan is Libor plus 925 bps with a 1% Libor floor, and the debt has call protection of 103 in year one, 102 in year two and 101 in year three.
Earlier in syndication, the first-lien term loan was upsized from $417 million and the maturity was shortened from seven years, and the second-lien term loan was upsized from $162 million, the maturity was shortened from eight years and the call protection was changed from 102 in year one and 101 in year two.
The first-lien term loan freed up for trading on Wednesday, and the debt was seen at 91 bid, another source added.
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.
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.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.