Forefront cuts spread on $635 million term loan to SOFR plus 425 bps

By Sara Rosenberg

New York, March 23 – Forefront Dermatology (Dermatology Intermediate Holdings III Inc.) reduced pricing on its $635 million seven-year first-lien term loan, of which $100 million is a delayed-draw tranche, to SOFR plus 425 basis points from SOFR plus 450 bps, according to a market source.

In addition, the original issue discount on the term loan firmed at 98, the wide end of the 98 to 98.5 talk, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

Ticking fees on the delayed-draw term loan remained at half the margin from days 46 to 90 and the full margin thereafter.

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 the arrangers on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Wednesday, the source added.

Proceeds 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.

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