LifeScan sets price talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 8 – LifeScan Global Corp. released price talk on its $1.4 billion seven-year covenant-light first-lien term loan (B1/B+) and $350 million eight-year covenant-light second-lien term loan (Caa1/B) with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 850 bps with a 0% Libor floor and a discount of 98.5 to 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Amortization on the first-lien term loan is 3.5% per annum.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC, Credit Suisse Securities (USA) LLC, Barclays and RBC Capital Markets are the arrangers on the $1.75 billion in term loans.

Commitments are due at noon ET on May 23, the source added.

Proceeds will be used to fund the buyout of the company by Platinum Equity from Johnson & Johnson in a transaction valued at about $2.1 billion.

LifeScan is a marketer of blood glucose monitoring products with headquarters in Chesterbrook, Pa., and Zug, Switzerland.

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