WS Audiology sets U.S. term B at $1.05 billion, euro at €1.83 billion

By Sara Rosenberg

New York, March 15 – WS Audiology (Auris Lux III Sarl) finalized tranche sizes under its €2.768 billion equivalent U.S. and euro term loan B due February 2029 (B3/B-), with the U.S. loan sized at $1.05 billion and the euro loan sized at €1.83 billion, versus minimum $500 million and minimum €1 billion at launch, according to a market source.

Also, pricing on the U.S. term loan firmed at SOFR plus 425 basis points, the low end of the SOFR plus 425 bps to 450 bps talk, and the original issue discount was tightened to 99.5 from 99, the source said.

Recommitments for the U.S. term loan were scheduled to be due at 10 a.m. ET on Friday.

In addition, the issue price talk on the euro term loan was revised to a range of 99.5 to par from a range of 99 to 99.5, and then pricing finalized at par following the 8 a.m. ET recommitment deadline for the euro term loan, the source added.

Pricing on the euro term loan remained at Euribor plus 450 bps, and the term loans still have a 25 bps step-down at 4.75x senior net leverage and 101 soft call protection for six months.

Goldman Sachs is the physical bookrunner on the U.S. loan. Deutsche Bank, Danske Bank and JPMorgan Chase Bank are the physical bookrunners on the euro loan. HSBC Securities, Jyske Bank, Mizuho, Nordea, Nykredit, RBC Capital Markets, Santander and UBS Investment Bank are passive bookrunners. Citigroup Global Markets Inc. and MUFG are mandated lead arrangers. Deutsche Bank is the agent.

Proceeds will be used to extend existing $1.2 billion and €2.1 billion term loans due February 2026, in conjunction with a €500 million equity contribution used to reduce the outstanding term loan debt by €360 million, to repay revolving credit facility borrowings and to pay transaction costs.

In addition, the company is getting a €525 million privately placed Holdco PIK financing to refinance its existing second-lien term loan.

WS Audiology is a Denmark and Singapore-based provider of hearing aids and solutions for people with hearing challenges.

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