Wedgewood Pharmacy sets price talk for $220M term loan backing buyout

Joint bookrunners Macquarie and Natixis have released price talk on the $220 million term loan B supporting the acquisition of Wedgewood Pharmacy by Partners Group, according to sources. Commitments are due by Feb. 24.

Price talk for the seven-year covenant-lite term loan B is L+475-500 with a 0.75% Libor floor and an issue price of 99. That works out to a yield to maturity of roughly 5.80%-6.07%. Lenders are offered six months of 101 soft call protection.

Corporate and facility ratings are B-/B3, with a 3 recovery rating from S&P Global Ratings. The rated entity is Specialty Pharma II Inc.

Financing will also include a $40 million, five-year revolver with a springing first-lien leverage covenant.

Partners Group announced Dec. 9, 2020, that it was acquiring Wedgewood from New Harbor Capital.

Wedgewood Pharmacy provides compounded animal medications for acute and chronic conditions.