Southern Veterinary flexes second-lien loan to Libor plus 775 bps

By Sara Rosenberg

New York, Oct. 1 – Southern Veterinary Partners LLC reduced pricing on its $140 million eight-year senior secured second-lien term loan (Caa2/CCC) to Libor plus 775 basis points from Libor plus 800 bps, according to a market source.

Additionally, the original issue discount on the second-lien term loan was revised to 99 from 98.5, the source said.

The second-lien term loan still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Pricing on the company’s $435 million seven-year senior secured first-lien term loan (B2/B-) and $60 million delayed-draw first-lien term loan (B2/B-) remained at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99.

The delayed-draw term loan, which is being 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.

As before, the first-lien term loan has 101 soft call protection for one year.

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.

Recommitments are due at 11 a.m. ET on Friday with allocations expected thereafter, 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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