QoLmeds/Genoa flexes $285 million term loan to Libor plus 450 bps

By Sara Rosenberg

New York, July 11 – QoLmeds/Genoa Healthcare reduced pricing on its $285 million six-year covenant-light term loan to Libor plus 450 basis points from Libor plus 500 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99˝ 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.

In addition to the pricing changes, the MFN sunset provision was removed from the term loan.

The company’s $315 million credit facility (B2/B) also includes a $30 million five-year revolver.

Allocations are expected on Monday, the source added.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund QoLmeds’ acquisition of Genoa.

Other funds for the transaction will come from equity.

QoLmeds, owned by Nautic Partners, is a Pittsburgh-based specialty pharmacy serving the mental health community. Genoa is a Tukwila, Wash.-based provider of pharmacy, phlebotomy and laboratory services.

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