Phillips-Medisize sets talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 29 - Phillips-Medisize Corp. released price talk on its $365 million first-lien covenant-light term loan (B2/B) and $170 million second-lien covenant-light term loan (Caa2/CCC+) with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor and a discount of 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 call protection of 102 in year one and 101 in year two.

The company's $605 million credit facility also provides for a $70 million revolver (B2/B).

Goldman Sachs Bank USA, UBS Securities LLC and Jefferies Finance LLC are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Golden Gate Capital from Kohlberg & Co. LLC.

The acquisition is subject to customary regulatory approvals and is expected to close in the coming months.

Phillips-Medisize is a Hudson, Wis.-based provider of design and manufacturing services to the pharmaceutical, medical device, diagnostic and specialty commercial markets.

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