Ashfield Huntsworth finalizes $200M add-on term loan, preps allocations

A J.P. Morgan-led arranger group finalized pricing at the midpoint of talk on the $200 million add-on first-lien term loan for Ashfield Huntsworth. Investors are being told to expect allocations today, according to sources.

The add-on comes at an issue price of 99.25, versus a guidance range of 99-99.5 at launch, and it is fungible with the existing $1.011 billion first-lien term loan due 2028 that is priced at L+425, with a 0.5% Libor floor. Note that the existing 101 soft call protection is due to roll off in August.

At final terms, the yield to maturity is 4.98%, compared to 4.93%-5.03% under the original talk.

NatWest, ING, Bank of Ireland, Barclays, Jefferies and RBC Capital Markets are joint lead arrangers on the deal.

First-lien facility ratings are B/B1, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are B/B2, with stable outlooks.

Proceeds from the add-on will be used to finance the acquisition of Research Partnership, to satisfy tax liabilities and for general corporate purposes. The purchase price for the acquisition is $176 million, and the tax liability is associated with the separation of the company's pharmaceutical packaging business, Sharp, rating agencies note.

In 2021 Clayton Dubilier & Rice acquired UDG Healthcare PLC, whose divisions included Ashfield and Sharp, and merged it with existing portfolio company Huntsworth. The transaction was backed with a cross-border loan financing that was syndicated in August 2021 comprising the dollar-denominated first-lien term loan as well as a €690 million tranche that priced at E+400, with a 0% floor. Additional financing included a $400 million revolver and a £330 million second-lien loan that was privately placed.

Ashfield Huntsworth is an independent end-to-end provider of outsourced medical communications, marketing and advisory services to pharmaceutical and biotech clients.