Paradigm lifts first-lien term loan to $125 million, revises pricing

By Sara Rosenberg

New York, April 26 – Paradigm (Outcomes Group Holdings Inc.) upsized its non-fungible incremental first-lien term loan due October 2025 to $125 million from $110 million and reduced pricing to SOFR+CSA plus 425 basis points from talk in the range of 450 bps to 475 bps, according to a market source.

The company also trimmed pricing on its non-fungible $60 million incremental second-lien term loan due October 2026 to SOFR+CSA plus 750 bps from talk in the range of 800 bps to 825 bps, the source said.

In addition, the original issue discount on both term loans was tightened to 98.5 from 98.

Both term loans still have a 0.5% floor and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, the incremental first-lien term loan still has 101 soft call protection for six months, and the incremental second-lien term loan still has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and Truist are the arrangers on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used to repay revolving credit facility borrowings and fund a distribution to shareholders.

With this transaction, the revolver maturity is being extended to April 2025 from October 2023.

Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic case management to the workers’ compensation industry.

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