Medline sets price talk on $7 billion equivalent of term loans

By Sara Rosenberg

New York, Sept. 20 – Medline Industries released price talk on its $6 billion seven-year term loan and $1 billion equivalent euro seven-year term loan with its lender call on Monday, according to a market source.

The U.S. term loan is talked at Libor plus 350 basis points to 375 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, and the euro term loan is talked at Euribor plus 350 bps to 375 bps with a 0% floor and a discount of 99 to 99.5, the source said.

The term loans have 101 soft call protection for six months.

BofA Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, Morgan Stanley Senior Funding Inc., MUFG, BMO Capital Markets, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Investment Bank, Wells Fargo Securities LLC, Bank of the West, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho, Nomura, RBC Capital Markets, Santander, Truist, ING, Societe Generale, Sumitomo, Bank of Nova Scotia and TD Securities (USA) LLC are the lead arrangers on the deal.

Commitments are due at noon ET on Sept. 30, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone, Carlyle and Hellman & Friedman.

Other funds for the transaction are expected to come from $3.8 billion of secured notes and $4 billion of unsecured notes.

Closing is expected late this year, subject to regulatory approvals and customary conditions.

Medline is a Northfield, Ill.-based manufacturer and distributor of health care supplies to hospitals, post-acute settings, physician offices and surgery centers.

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