Precision Medicine shifts funds between funded, delayed-draw loans

By Sara Rosenberg

New York, Oct. 30 – Precision Medicine Group LLC upsized its funded seven-year covenant-lite first-lien term loan to $575 million from $550 million and downsized its delayed-draw covenant-lite first-lien term loan to $75 million from $100 million, according to a market source.

Also, pricing on the term loan debt firmed at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, the 25 bps step-down at 5x net first-lien leverage was removed, and the original issue discount was revised to 98.5 from 99, the source said.

In addition, the delayed-draw term loan ticking fee was changed to half the margin from days 31 to 60 and the full margin thereafter from 1% from days 61 to 120, half the margin from days 121 to 360 and the full margin thereafter, and some revisions were made to documentation.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $735 million of credit facilities (B2/B-) also include an $85 million five-year revolver.

Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Mizuho and Blackstone are the joint lead arrangers and bookrunners on the deal.

Recommitments were scheduled to be due at 10:30 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone Group, and the extra funded term loan portion will add cash to the balance sheet.

Precision Medicine is a specialized health care services company that provides product development and commercialization support for pharmaceutical and life sciences businesses.

© 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.