Aegis trims term loan B to $300 million, flexes to Libor plus 550 bps

By Sara Rosenberg

New York, May 4 – Aegis Toxicology Sciences Corp. downsized its seven-year first-lien term loan B to $300 million from $320 million and increased pricing to Libor plus 550 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.

In addition, the original issue discount on the term loan was revised to 98.5 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

As before, the term loan has a 1% Libor floor, amortization of 1% per annum, a maximum net total leverage covenant and an excess cash flow sweep of 75% when net total first-lien leverage is more than 4.25 times, with steps.

The company’s now $350 million of senior secured credit facilities, down from $370 million, also provide for a $50 million five-year revolver.

Morgan Stanley Senior Funding Inc., SunTrust Robinson Humphrey Inc., Credit Suisse Securities (USA) LLC and Fifth Third are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing debt.

Aegis Toxicology is a Nashville, Tenn.-based laboratory sciences company.

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