Duly Health & Care upsizes add-on term loan to $80M; recommitments due today

Duly Health & Care has upsized its incremental first-lien term loan by $40 million, to $80 million, according to sources. Recommitments are due today by 1 p.m. ET.

The add-on remains offered at 99.5 and will be fungible with the existing covenant-lite first-lien term loan due March 2028 that is priced at L+325, with a 0.75% Libor floor. At talk, the yield to maturity is 4.16%. There is no call protection on the loan.

Credit Suisse is leading the deal, and proceeds will be used for tuck-in mergers and acquisitions and to repay revolver borrowings.

Current corporate and facility ratings are B/B2, with stable outlooks, and a 3 recovery rating on the loan from S&P Global Ratings. Midwest Physician Administrative Services LLC is the borrower.

The issuer placed the existing $650 million term loan in March as part of a dividend recapitalization. Final pricing terms included a 25-basis-point margin step-down after 0.5x of net first-lien deleveraging.

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.