Virgin Pulse cuts spread on second-lien loan to Libor plus 725 bps

By Sara Rosenberg

New York, March 30 – Virgin Pulse reduced pricing on its $185 million second-lien term loan (CCC) to Libor plus 725 basis points from Libor plus 750 bps, according to a market source.

Also, the original issue discount on the second-lien term loan firmed at 99, the tight end of the 98.5 to 99 talk, the source said.

The second-lien term loan still has a 0.75% Libor floor and call protection of 102 in year one and 101 in year two.

Pricing on the company’s $505 million first-lien term loan (B-) remained at Libor plus 400 bps with a 0.75% Libor floor and an original issue discount of 99.

Included in the first-lien term loan is 101 soft call protection for six months.

KKR Capital Markets and JPMorgan Chase Bank are the leads on the deal, with KKR the left lead on the first-lien loan and JPMorgan the left lead on the second-lien loan.

Recommitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

Virgin Pulse is a digital health, wellbeing and engagement company. It is based in Providence, R.I.

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