Tivity cuts spread on $400 million term loan to Libor plus 425 bps

By Sara Rosenberg

New York, June 24 – Tivity Health Inc. lowered pricing on its $400 million seven-year covenant-lite first-lien term loan B to Libor plus 425 basis points from talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

Furthermore, the original issue discount on the term loan finalized at 99.5, the tight end of the 99 to 99.5 talk, the source said.

As before, the term loan has a 0% Libor floor and 101 soft call protection for six months.

The company’s $500 million of senior secured credit facilities (B2/B+) also include a $100 million five-year revolver.

The revolver will have an interest rate of Libor plus 375 bps to 425 bps, based on total net leverage.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Truist are the joint lead arrangers and bookrunners on the deal. Fifth Third and Citizens Bank are co-syndication agents.

Recommitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.

Closing is expected to occur by early July 2021.

Proceeds will be used to refinance existing credit facilities and pay related fees, expenses and the original issue discount.

Tivity is a Franklin, Tenn.-based provider of fitness and health improvement programs.

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