Cloudmed upsizes add-on term loan to $240M, tightens issue price

Lead arranger Goldman Sachs and Deutsche Bank have set terms on the incremental first-lien term loan for Cloudmed, upsizing the add-on to $240 million, from $213 million at launch, according to sources. Recommitments are due by close of business today, and allocations are expected to follow tomorrow.

The add-on term loan is now offered at an original issue discount of 99.5, from 99 at initial guidance, and will be fungible with the issuer's existing covenant-lite first-lien term loan due October 2027 that is priced at L+425, with a 0.50% Libor floor. The facility also has a 25-basis-point margin step-down upon a qualified IPO. Lenders are offered six months of 101 soft call protection.

At talk, the yield to maturity is approximately 4.94%.

Proceeds from the add-on will be used to fund the company's acquisition of par8o, a complementary revenue integrity business.

The issuer last approached the loan market in October when it repriced its existing term loan, lowering the spread from L+500, with a 0.75% Libor floor.

S&P Global Ratings has affirmed its facility and issuer rating of B-, with a 3 recovery rating and a stable outlook. Moody's has confirmed its B3 issuer and facility level ratings and maintained its stable outlook.

Cloudmed, formerly known as Revint Solutions LLC and backed by New Mountain Capital, provides revenue integrity and recovery services to hospitals and health systems.