PCI Pharma shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Nov. 8 – PCI Pharma Services (Packaging Coordinators Midco Inc.) upsized its fungible incremental first-lien term loan due November 2027 to $570 million from $510 million and downsized its fungible privately placed incremental second-lien term loan due November 2029 to $80 million from $140 million, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5, the source said.

As before, pricing on the incremental first-lien term loan is Libor plus 375 basis points with a 0.75% Libor floor, in line with existing pricing, and the incremental second-lien term loan is priced at Libor plus 700 bps with a 0.75% Libor floor, a reduction from current pricing of Libor plus 825 bps with a 1% Libor floor.

Jefferies LLC, RBC Capital Markets and Antares Capital are the arrangers on the deal.

Recommitments are due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used with new cash equity to fund the acquisition of Lyophilization Services of New England Inc., a Bedford, N.H.-based contract development and manufacturing organization, from Permira.

PCI is a Philadelphia-based provider of outsourced pharmaceutical services.

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