VetCor to launch $450 million first-lien term loan on Friday

By Sara Rosenberg

New York, July 10 – VetCor Professional Practices LLC is set to hold a lender call at 10 a.m. ET on Friday to launch a $450 million seven-year first-lien term loan (B2), according to a market source.

The company’s $830 million of senior secured credit facilities also include a $50 million five-year revolver (B2), a $95 million pre-placed delayed-draw first-lien term loan (B2), a $195 million eight-year pre-placed second-lien term loan (Caa2) and a $40 million pre-placed delayed-draw second-lien term loan (Caa2), the source said.

Jefferies LLC and Golub Capital are the arrangers on the financing.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

The delayed-draw term loans have a 24-month commitment period.

Proceeds will be used to fund the buyout of the company by Oak Hill Capital Partners.

As part of the transaction, the company will receive a significant new investment from existing shareholders Harvest Partners LP, Cressey & Co. LP and management.

VetCor is a Hingham, Mass.-based owner and operator of veterinary hospitals.

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