Carestream Health raises pricing on first- and second-lien term loans

By Sara Rosenberg

New York, June 3 - Carestream Health Inc. increased pricing on its $1.85 billion six-year first-lien covenant-light term loan (B1/B+) to Libor plus 400 basis points from talk of Libor plus 325 bps to 350 bps, and on its $500 million 61/2-year second-lien covenant-light term loan (Caa1/B-) to Libor plus 850 bps from Libor plus 750 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was revised to 98½ from 99 and the discount on the second-lien term loan widened to 98 from 99, the source said.

Furthermore, the second-lien term loan is now non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, with an initial public offering carve-out, versus having call protection of 103 in year one, 102 in year two and 101 in year three, subject to an IPO claw, the source continued.

And, amortization on the first-lien term loan was beefed up to 5% per annum from 1%.

As before, both term loans have a 1% Libor floor and the first-lien loan has 101 repricing protection for one year.

The company's $2.5 billion credit facility also provides for a $150 million revolver (B1/B+).

Commitments are due at noon ET on Tuesday, the source added.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to refinance an existing term loan and fund a dividend.

Carestream is a Rochester, N.Y.-based provider of medical and dental imaging products.

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