VetCor talks $450 million first-lien term loan at Libor plus 300 bps

By Sara Rosenberg

New York, July 13 – VetCor Professional Practices LLC launched on Friday its $450 million seven-year first-lien term loan (B2/B) with price talk of Libor plus 300 basis points with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The company’s $830 million of senior secured credit facilities also provide for a $50 million five-year revolver (B2/B), a $95 million pre-placed delayed-draw first-lien term loan (B2/B), a $195 million eight-year pre-placed second-lien term loan (Caa2/CCC+) and a $40 million pre-placed delayed-draw second-lien term loan (Caa2/CCC+).

Included in the first-lien term loan is 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 delayed-draw term loans have a 24-month commitment period.

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

Commitments are due at noon ET on Thursday, the source added.

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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