Inovie sets talk on €775M term loan add-on

INOVIE group's €775 million add-on to its term loan due March 2028 has been talked at an offer price of 99-99.25, suggesting a yield to maturity on the new debt of 3.95%-4.00%. The loan will carry a margin in line with the existing facility at E+375.

Commitments on the new deal are due Dec. 7 via physical bookrunners BNP Paribas (left) and Credit Agricole CIB.

Proceeds from the covenant-lite loan will be used to repay borrowings under a revolving credit facility, fund acquisitions and repay quasi-equity.

Existing holders of the term loan are offered a waiver fee of 25 basis points.

A margin ratchet means terms remain at E+375 while senior net leverage remains above 5.1x, ratcheting to E+350 when net leverage falls between 4.6x and 5.1x, and to E+325 when leverage is 4.6x or below. The add-on will reset the margin ratchet holiday and the 101 soft-call protection, both for six months.

There are no ticking fees, and the transaction is set to close in December. The portability clause allows the asset to be sold to a permitted investor, including Ardian funds, for up to 24 months after the first utilization of the fungible add-on, while senior net leverage is less than or equal to 6x with a minimum 35% of the equity value.

Inovie's outstanding March 2028 facility was completed as a €772 million term loan B in December 2020 to back Ardian's acquisition of a stake in the firm. The E+375 facility priced at 99.75 and was quoted at 99.625/100.125 in the secondary market before the add-on was announced.

B/B2/B rated Inovie operates multi-site laboratories across five regions in France, specializing in fertility, genomics, anatomical pathology and veterinary services.