WellSky tightens talk on $1.125B term loan B, eyes allocations

A BofA Securities-led arranger group has tightened pricing on the $1.125 billion, seven-year first-lien term loan for WellSky Corp. to L+325, from L+375, while leaving the 0.75% Libor floor and a 99.5 original issue discount unchanged, sources said. Recommitments are due today by 5 p.m. ET, and the deal is expected to allocate tomorrow.

At the revised talk, the loan now yields roughly 4.15% to maturity, versus 4.67% previously. Lenders will receive six months of 101 soft call protection.

Additional arrangers include Goldman Sachs, Deutsche Bank, BMO Capital Markets, RBC Capital Markets, Nomura and TPG.

Proceeds from the new term loan, along with a new $405 million second-lien term loan due 2029 that is being privately placed, will be used to refinance the issuer's existing first- and second-lien term loans.

S&P Global Ratings assigned a B issue-level rating and 2 recovery rating to the first-lien debt, which includes a $110 million revolving credit facility due 2026. The corporate rating is B- and the outlook is stable. Existing corporate and facility ratings from Moody's are B3 and B2, respectively.

The borrower is Project Ruby Ultimate Parent Corp.

The issuer's existing first-lien term loan due February 2024 and second-lien term loan due February 2025 date to the 2017 buyout of the company, then called Mediware Information Systems, by TPG Capital. WellSky had in recent months increased both tranches, first to facilitate an investment in the company by additional private equity sponsor Leonard Green & Partners and then in October 2020 to back an acquisition. Following these transactions, the balances stood at roughly $1.088 billion on the first-lien term loan and $500.5 million on the second-lien, according to Ratings.

WellSky is a provider of enterprise software to the healthcare industry.