Omnia Partners finalizes $1.8 billion of term loans at 99 OID

By Sara Rosenberg

New York, July 19 – Omnia Partners LLC firmed the original issue discount on its $1.65 billion seven-year first-lien term loan and $155 million delayed-draw first-lien term loan at 99, the tight end of revised talk of 98.5 to 99 and tighter than initial talk in the range of 97.5 to 98, according to a market source.

Pricing on the term loan and delayed-draw term loan, which will trade as a strip, is SOFR plus 425 basis points with a 0% floor. The debt has a 25 bps step-down at 1x inside closing date consolidated first-lien net leverage, but can’t step down prior to 12 months from the closing date, the source said.

The term loan has 101 soft call protection for six months.

Delayed-draw term loan availability is up to six months after closing, subject to first-lien net leverage of 6x or less.

Ticking fees on the delayed-draw term loan are half the margin from days 46 to 90 and the full margin thereafter.

Earlier in syndication, the funded term loan was upsized from $1.625 billion, pricing on the funded and delayed-draw term loans was lowered from talk in the range of SOFR plus 450 bps to 475 bps, one leverage-based pricing step-down was removed, leaving one in place, and some changes were made to documentation.

The company’s $2.055 billion of credit facilities also include a $250 million revolver.

Barclays, Fifth Third, Brinley, BNP Paribas Securities Corp., Citizens, UBS Investment Bank, Jefferies LLC and Golub Capital are the joint lead arrangers on the deal.

Proceeds will be used to fund the acquisition of Premier Inc.’s non-health care group purchasing organization operations for about $800 million, to refinance in full the company’s existing debt, for general corporate purposes and to pay related fees and expenses.

Closing on the acquisition is expected by early August, subject to regulatory approval and customary conditions.

Omnia, owned by TA Associates, Leonard Green & Partners and management, is a Franklin, Tenn.-based non-health care group purchasing organization.

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