Press Ganey talks $1.25 billion term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, July 9 – Press Ganey Associates Inc. (Emerald TopCo Inc.) launched on Tuesday its $1.25 billion seven-year first-lien term loan with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum with a bullet at maturity.

The company’s $1.5 billion of credit facilities (B2/B) also include a $250 million revolver.

Barclays, Citigroup Global Markets Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, BMO Capital Markets and Deutsche Bank Securities Inc. are the arrangers on the deal.

Commitments are due at 5 p.m. ET on July 22, the source said.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP and Ares Management Corp.

Other funds for the transaction will come from $453 million of second-lien notes that were privately placed with Goldman Sachs Merchant Banking Division and GIC.

Closing is expected in the third quarter, subject to customary approvals.

Press Ganey is a South Bend, Ind.-based provider of patient experience measurement and performance improvement solutions to health care organizations.

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