FastMed talks $525 million two-part term loan deal; MHS, LifeMiles set pricing for add-ons

By Paul A. Harris

Portland, Ore., Jan. 24 – The leveraged loan index fell a nickle on Wednesday, to finish with a dollar price of 96.39, well off the low water mark of 94.47, the point at which it quit dropping on Jan. 2, but well below the 99.07 high posted on Oct. 5, 2018, a trader said on Thursday.

The loan index returned 2.36% on the year to Wednesday's close, having marched its way back from the 2.31% decline it posted in December, the source added.

The daily cash flows of the dedicated loan funds remained negative on Wednesday, the most recent session for which data was available at press time.

The funds sustained $260 million of outflows on the day, with bank loan ETFs comprising exactly half of that outflow.

In a relatively quiet session in the new issue market FastMed Urgent Care set price talk for $525 million term loan debt.

MHS, Inc. (Material Handling Systems) talked its $45 million fungible add-on deal.

And LifeMiles Ltd. set pricing for its $75 million add-on term loan B.

FastMed sets talk

FastMed Urgent Care set price talk for $525 million term loan debt, according to a market source.

The deal features a $400 million seven-year first-lien term loan talked at Libor plus 450 to 475 basis points, a 0% Libor floor at 98 to 99.

A $125 million eight-year second-lien term loan is talked at Libor plus 850 to 875 bps, a 0% Libor floor, at 97 to 98.

Commitments are due at noon ET on Feb. 7.

Bookrunner Barclays is the agent. SG and Antares are also bookrunners.

The Clayton, N.C.-based provider of walk-in clinic services plans to use the proceeds to fund the acquisition of NextCare Holdings.

MHS talk

MHS talked its $45 million fungible add-on to its existing Libor plus 500 bps term loan B due May 1, 2024 at an original issue discount of 99.00 on Thursday, according to a market source.

The spread floats atop a 1% Libor floor.

Commitments are due on Monday.

RBC Capital Markets LLC is the bookrunner.

Prior to the add-on the existing amount of the term loan B is $580 million.

The Mt. Washington, Ky.-based provider of parcel handling solutions plans to use the proceeds to repay borrowings under its revolving credit facility.

LifeMiles pricing

LifeMiles set pricing for its $75 million add-on term loan B due August 2022 (Ba2/BB-) on Thursday, according to a market source.

The spread to Libor is set at 550 bps, atop a 1% Libor floor, with an original issue discount of 99.50.

As with the exiting loan, the add-on has 101 hard call protection through August 2019 and amortizes at 10% annually.

Commitments are due at noon ET on Tuesday.

Morgan Stanley Senior Funding, Inc. is the arranger.

Proceeds from the add-on will be used to pay a dividend to shareholders.

LifeMiles is a Latin American coalition loyalty program and the exclusive operator of Avianca’s frequent flyer program.

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