Pediatric lifts funded loan to $660 million, adds delayed-draw

By Sara Rosenberg

New York, Feb. 8 – Pediatric Associates Holding Co. LLC upsized its seven-year covenant-lite first-lien term loan to $660 million from $600 million and added a $100 million delayed-draw covenant-lite first-lien term loan to the capital structure, for a total debt raise of $760 million, according to a market source.

Also, pricing on the term loan debt was reduced to Libor plus 325 basis points from Libor plus 350 bps, the source said.

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 term loan debt still has a 0.5% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc. and Citizens Bank are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to fund a recapitalization and a partial equity sale of the business.

Pediatric Associates is a pediatric practice management company.

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