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Paradigm Outcomes shifts funds between first- and second-lien loans
By Sara Rosenberg
New York, Oct. 22 – Paradigm Outcomes (Comet Acquisition Inc.) upsized its seven-year covenant-light first-lien term loan to $475 million from $450 million and downsized its eight-year covenant-light second-lien term loan to $130 million from $155 million, according to a market source.
In addition, pricing on the first-lien term loan was reduced to Libor plus 350 basis points from talk in the range of Libor plus 375 bps to 400 bps and a 25 bps step-down was added at 0.5 times inside closing net leverage, and pricing on the second-lien term loan was lowered to Libor plus 750 bps from talk in the range of Libor plus 775 bps to 800 bps, the source said.
Furthermore, the original issue discount on the first-lien term loan was changed to 99.75 from 99.5 and the discount on the second-lien term loan tightened to 99.75 from 99.
As before, the first-lien term loan has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0% Libor floor and call protection of 102 in year one and 101 in year two.
The company’s $655 million of credit facilities also include a $50 million revolver.
Credit Suisse Securities (USA) LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.
Recommitments were scheduled to be due at 3 p.m. ET on Monday, the source added.
Proceeds will be used to help fund the buyout of the company by Omers Private Equity. Summit Partners, Paradigm’s existing majority owner, will continue to be a shareholder in the company.
Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic medical management to the workers’ compensation industry.
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