Paradigm finalizes $700 million term loan at SOFR plus 425 bps

By Sara Rosenberg

New York, April 2 – Paradigm (Outcomes Group Holdings Inc.) set pricing on its $700 million seven-year first-lien term loan at SOFR plus 425 basis points, the low end of the SOFR plus 425 bps to 450 bps talk, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, and some lender-friendly revisions were made to documentation, the source said.

The term loan still has two 25 bps step-downs at 0.5x and 1x below opening first-lien net leverage, a 0% floor and 101 soft call protection for six months.

The company’s $800 million of credit facilities (B3/B) also include a $100 million five-year revolver.

UBS Investment Bank is the left lead arranger on the deal.

Recommitments were scheduled to be due at 12:30 p.m. ET on Tuesday, the source added.

Proceeds will be used to refinance existing first- and second-lien credit facilities.

Omers Private Equity is the sponsor.

Paradigm is a Walnut Creek, Calif.-based accountable, specialty care management organization.

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