Signant Health revises $980 million first-lien term loan OID to 97

By Sara Rosenberg

New York, May 3 – Signant Health (Bracket Intermediate Holding Corp.) tightened the original issue discount on its $980 million five-year first-lien term loan to 97 from 96.5, according to a market source.

In addition, the company made some lender friendly documentation changes, the source said.

Pricing on the term loan remained at SOFR+10 basis points CSA plus 500 bps with one 25 bps leverage-based step-down and a 0.5% floor.

The term loan still has 101 soft call protection for six months.

Earlier in syndication, the company upsized the funded term loan from $850 million and terminated plans for a $130 million delayed-draw first-lien term loan that was going to be available for six months and had ticking fees of half the margin for days 46 to 90 and the full margin thereafter.

The change to the structure was made due to operational dynamics with cashless rolling into a delayed-draw term loan.

The company’s $1.06 billion of credit facilities (B3/B-) also include an $80 million revolver.

Jefferies LLC, Antares Capital and Golub are the bookrunners on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance the company’s existing debt. In place of the recently canceled delayed-draw term loan, the company will place $130 million of the term loan in a segregated account at close, for the purpose of a near-term potential acquisition under a letter of intent. In the event the acquisition does not close, the company will have six months from the closing date to use the funds on another acquisition or can repay it in full.

Signant is a Blue Bell, Pa., provider of clinical research technology and solutions for clinical trials.

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