Forefront Dermatology tweaks loan commitment deadline; Novolex comes to market

By Sara Rosenberg

New York, March 21 – In the primary market on Monday, Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) accelerated the commitment deadline for its first-lien term loan.

Additionally, Novolex Holdings LLC (Clydesdale Acquisition Holdings Inc.) approached lenders with a new first-lien term loan.

Forefront accelerated

Forefront Dermatology moved up the commitment deadline for its $635 million seven-year first-lien term loan, of which $100 million is a delayed-draw tranche, to noon ET on Wednesday from 5 p.m. ET on Thursday, a market source remarked.

Talk on the term loan is SOFR plus 450 basis points with a 0.5% floor, an original issue discount of 98 to 98.5 and 101 soft call protection for six months.

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

The company’s $730 million of credit facilities (B2/B) also include a $95 million revolver.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank and Natixis are leading the deal that will be used to help fund the buyout of the company by Partners Group from Omers Private Equity. Omers will maintain a minority equity stake in the company.

Forefront is a Manitowoc, Wis.-based dermatology physician practice.

Novolex holds call

Novolex emerged in the morning with plans to hold a lender call at 1 p.m. ET on Monday to launch a $2.63 billion seven-year sustainability-linked first-lien term loan (B2) at talk of SOFR+10 bps CSA plus 425 bps with a 0.5% floor, an original issue discount of 96 and 101 soft call protection for six months, according to a market source.

Commitments are due at 5 p.m. ET on March 30, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, Wells Fargo Securities LLC, BNP Paribas Securities Corp., MUFG, HSBC Securities (USA) Inc., BMO Capital Markets, Mizuho and Macquarie Capital (USA) Inc. are leading the deal that will be used to help fund the buyout of the company by Apollo Global Management from Carlyle. Carlyle will retain a minority stake in the company.

Closing is expected in the second quarter, subject to regulatory approvals.

Novolex is a Hartsville, S.C.-based manufacturer of packaging products for the foodservice, delivery and carryout, food processor and industrial markets.

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