Southern Veterinary reveals first-, second-lien term loan price talk

By Sara Rosenberg

New York, Sept. 22 – Southern Veterinary Partners LLC released price talk on its first- and second-lien term loans with its bank meeting on Tuesday, according to a market source.

The $435 million seven-year senior secured first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) are talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, and the $140 million eight-year senior secured second-lien term loan (Caa2/CCC) is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 98.5, the source said.

The delayed-draw term loan, which will be sold as a strip with the first-lien term loan, has a ticking fee of half the margin from days 61 to 120 and the full margin thereafter, and an 18-month commitment.

Call protection on the first-lien term loan is a 101 soft call for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Along with the term loans, the company’s $665 million of credit facilities include a $30 million five-year revolver (B2/B-).

Jefferies LLC is the lead arranger on the deal.

Commitments are due at 5 p.m. ET on Oct. 1, the source added.

Proceeds will be used to refinance the company’s existing capital structure.

Southern Veterinary is a Birmingham, Ala.-based provider of general practice veterinary services.

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