Paradigm ups spread on $222 million term loan to Libor plus 500 bps

By Sara Rosenberg

New York, May 28 – Paradigm Outcomes (Paradigm Acquisition Corp.) raised pricing on its $222 million seven-year covenant-light first-lien term loan to Libor plus 500 basis points from Libor plus 450 bps, according to a market source.

In addition, the original issue discount on the term loan was changed to 98.5 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 1% Libor floor.

Also revised was the excess cash flow sweep, the incremental allowance and the restricted payments capacity, the source continued.

The company’s $247 million credit facility (B1/B) also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Summit Partners LP from Lightyear Capital.

Commitments are due at 3 p.m. ET on Friday, the source added.

Paradigm is a Walnut Creek, Calif.-based provider of catastrophic and complex case management for the workers’ compensation industry.

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