8 Feb, 2022

Pediatric Associates completes $760M term loan facility tight of talk; terms

Investors have received allocations of Pediatric Associates LLC's $760 million, seven-year covenant-lite term loan B that priced tight of talk at L+325, with a 0.5% Libor floor and an original issue discount of 99.5 through a Credit Suisse-led arranger group, according to sources. Upsized from an initial target of $600 million, the facility is split between a $660 million funded tranche and a $100 million delayed-draw term loan. Proceeds will be used to support a recapitalization and a partial equity sale of the business. The company's existing debt will be refinanced in connection with an investment from TPG Capital, rating agencies note. Additional financing includes a $100 million revolver due 2027 with a springing first-lien net leverage covenant. Pediatric Associates is a national pediatric practice management firm.

Terms:

Borrower Pediatric Associates Holding Co. LLC
Issue $660 million term loan B; $100 million delayed-draw term loan
UoP Recapitalization
Spread L+325
Libor floor 0.50%
Price 99.50
Tenor 7-year
YTM 3.89%
Four-year yield 3.95%
Call protection 101 soft call for 6 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers CS/GS/DB/Citz
Admin agent CS
Px Talk L+350/0.5%/99.5
Sponsor TPG Capital
Notes DDTL ticking fee: 0% for 45 days; 50% of margin for days 46-90; 100% of margin thereafter. Upsized by $160 million.