Perrigo accelerates term loan B commitment deadline; Dayco Products sets price talk

By Sara Rosenberg

New York, April 5 – In the primary market on Tuesday, Perrigo Co. plc moved up the commitment deadline for its first-lien term loan B, and Dayco Products LLC released price talk on its term loan B in connection with its lender call.

Furthermore, Epiq (DTI Holdco Inc.) joined this week’s new issue calendar.

Perrigo tweaks timing

Perrigo accelerated the commitment deadline for its $800 million seven-year first-lien term loan B, of which $400 million is a delayed-draw tranche, to 5 p.m. ET on Tuesday from 5 p.m. ET on Wednesday, a market source remarked.

Talk on the term loan B is SOFR+10 basis points CSA plus 275 bps to 300 bps with a 25 bps step-down at 0.5x inside closing date total net leverage, a 0.5% floor, an original issue discount of 98.5, and 101 soft call protection for six months.

The company’s $2.1 billion of senior secured credit facilities (Baa3/BBB-/BBB-) also include a $1 billion five-year revolver and a $300 million five-year term loan A.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, BofA Securities Inc. and HSBC Securities (USA) Inc. are leading the deal.

Perrigo buying Hera

Proceeds from Perrigo’s credit facilities, $500 million of notes and cash on hand will be used to fund the acquisition of Hera SAS (HRA Pharma), to refinance an existing term loan A due August 2022 and to redeem $369 million of existing notes due 2023.

Hera is being bought from Astorg and Goldman Sachs Asset Management in a transaction valued at €1.8 billion.

Closing is expected by the end of the first half of 2022, subject to customary conditions, including regulatory approvals.

Perrigo is a Dublin-based provider of self-care products and over-the-counter health and wellness solutions. Hera is a Paris-based consumer self-care company.

Dayco guidance

Dayco Products held its lender call on Tuesday afternoon and announced price talk on its $470 million term loan B (B3) due May 2025 at SOFR+CSA plus 575 bps to 600 bps with a 0.5% floor and an original issue discount of 97.5 to 98, a market source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 102 hard call protection for one year and then 101 hard call protection for six months.

Commitments are due at noon ET on April 14, the source added.

BofA Securities Inc. is leading the deal that will be used to refinance/extend an existing $452 million term loan due May 2023 priced at Libor plus 425 bps with a 0% Libor floor.

Dayco is a Roseville, Mich.-based engine products and drive systems manufacturer for the automotive, heavy-duty, and industrial market segments.

Epiq readies deal

Epiq set a lender call for 11 a.m. ET on Wednesday to launch a $960 million seven-year first-lien term loan (B2/B-), according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

Commitments are due at 5 p.m. ET on April 20.

The company’s $1.335 billion of credit facilities also include a $125 million revolver and a $250 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance the company’s existing capital structure.

Epiq is an alternative legal service provider, offering technology and services to corporate and law firm clients.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.