Roadshow starts for $7.77 billion two-part high-yield notes backing buyout of Medline

By Paul A. Harris

Portland, Ore., Sept. 27 – A roadshow started on Monday for a $7.77 billion two-part offering of high yield notes backing the buyout of Medline, according to a syndicate source.

The deal includes $3.77 billion of 7.5-year senior secured notes with initial talk in the low 4% area and $4 billion of eight-year senior unsecured notes with initial talk in the 6% area.

The deal was scheduled to kick off on a Monday conference call with investors, to be followed by a telephone roadshow set to run through Wednesday. Dealers plan to price the Rule 144A and Regulation S for life notes thereafter.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Morgan Stanley & Co. LLC, MUFG, BMO Capital Markets Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Jefferies LLC, Macquarie Capital (USA) Inc., UBS Securities LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., Nomura Securities International Inc., RBC Capital Markets LLC, Santander Investment Securities Inc., Truist Securities Inc., ING Financial Markets LLC, Scotia Capital (USA) Inc., SG Americas Securities LLC, SMBC Nikko Securities America Inc. and TD Securities (USA) LLC are the joint bookrunners.

Blackstone and TCG are the co-managers.

JPMorgan will bill and deliver for the secured notes.

Goldman Sachs will bill and deliver for the unsecured notes

All of the notes are being sold with three years of call protection. All of the unsecured notes are callable at par plus the full coupon with proceeds from a qualified initial public offering of shares.

Credit ratings remain to be determined.

The issuing entity will be Mozart Debt Merger Sub Inc., which is to be merged with and into Medline Borrower, LP.

Proceeds plus a $6 billion term loan, a €1 billion term loan, $2.23 billion other secured mortgage debt and an equity contribution will be used to help fund the buyout of Medline, a Northfield, Ill.-based manufacturer and distributor of health care supplies, by Blackstone Group, Carlyle Group and Hellman & Friedman LLC.

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