WS Audiology completes €100M term loan add-on

WS Audiology A/S has completed a €100 million add-on to its E+400 term loan due February 2026, priced at 99.75. The add-on had originally been talked at 99-99.50, before guidance was revised to 99.50-99.75 and syndication was accelerated.

Deutsche Bank (physical) and Danske Bank were bookrunners on the transaction, the proceeds of which will be used to repay a short-maturity sidecar facility that was put in place in 2020 in response to the COVID-19 pandemic.

WS Audiology was formed via the merger of EQT-backed Sivantos and family-owned Widex in a deal that was completed in 2019. The firm's loan dates from a cross-border loan put in place in 2018, split between a €1.7 billion euro term loan B and a €900 million-equivalent dollar TLB. These facilities have subsequently been increased, and totaled €3.06 billion-equivalent before the add-on. The €100 million two-year facility put in place in 2020 came alongside a €50 million equity injection and a covenant amendment to the firm's revolver. The firm also has a €525 million second-lien facility.

The issuer is rated B-/B3. Market sources note that current leverage stands at roughly 6.6x through the secured debt and 8.2x total.