Ellucian incremental term loan frees to trade; Forefront Dermatology price talk emerges

By Sara Rosenberg

New York, March 10 – Ellucian finalized the spread on its incremental first-lien term loan at the high end of guidance and then the debt made its way into the secondary market on Thursday.

Also, Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) announced price talk on its loan transaction with launch, and Smyrna Ready Mix Concrete LLC joined the near-term primary calendar.

Ellucian updated, breaks

Ellucian set pricing on its non-fungible $325 million senior secured incremental first-lien term loan due October 2027 (B-) at SOFR plus 425 basis points, the high end of the SOFR plus 400 bps to 425 bps talk, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 99, 101 soft call protection for six months and no CSA.

Commitments continued to be due at 1 p.m. ET on Thursday and the incremental term loan began trading in the afternoon, with levels quoted at 99 bid, 99¼ offered, another source added.

BofA Securities Inc. is the left lead on the deal that will be used to help fund the acquisition of CampusLogic, a Chandler, Ariz.-based provider of SaaS technology that helps colleges and universities remove barriers in the financial aid process.

Ellucian is a Reston, Va.-based provider of higher education software and services.

Forefront guidance

Forefront Dermatology held its lender call in the morning and released price on its $635 million seven-year first-lien term loan, of which $100 million is a delayed-draw tranche, at SOFR plus 450 bps with a 0.5% floor and an original issue discount of 98 to 98.5, a market source remarked.

The term loan has 101 soft call protection for six months, and ticking fees on the delayed-draw piece are half the margin from days 46 to 90 and the full margin thereafter, the source added.

The company’s $730 million of credit facilities (B2/B) also include a $95 million revolver.

Commitments are due at 5 p.m. ET on March 24.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank and Natixis are leading the deal that will be used to help fund the buyout of the company by Partners Group from Omers Private Equity. Omers will maintain a minority equity stake in the company.

Forefront is a Manitowoc, Wis.-based dermatology physician practice.

Smyrna readies loan

Smyrna Ready Mix Concrete will hold a lender call at 10 a.m. ET on Monday to launch a $650 million seven-year term loan B (Ba3/B+), according to a market source.

Commitments are due at 5 p.m. ET on March 23, the source added.

JPMorgan Chase Bank is the left lead on the deal that will be used for acquisitions.

Smyrna Ready Mix is a Nashville, Tenn.-based manufacturer and retailer of ready-mixed concrete.

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