18 Nov, 2021

Duly Health & Care completes $80M add-on term loan; terms

Duly Health & Care has completed an $80 million fungible add-on to its covenant-lite first-lien term loan due March 2028 (L+325, 0.75% Libor floor) at an original issue discount of 99.5 in a Credit Suisse-led deal, according to sources. The loan was upsized by $40 million and priced in line with talk. Proceeds will be used for tuck-in mergers and acquisitions and to repay revolver borrowings. Duly Health & Care, formerly known as DuPage Medical Group Ltd., is an independent multispecialty physician group in the U.S. Ares Management is the sponsor.

Terms:

Borrower Duly Health & Care (Midwest Physician Administrative Services LLC)
Issue $80 million fungible add-on term loan B
UoP M&A, Refinancing
Spread L+325
Libor floor 0.75%
Price 99.5
Tenor March 2028
YTM 4.16%
Four-year yield 4.20%
Call protection None
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers CS
Admin agent CS
Px Talk L+325/0.75%/99.5
Sponsor Leverage-based margin step-down of 25 bps; tranche size now ~$730 million
Notes Upsized by $40 million during marketing