UDG sets talk on $2.41 billion equivalent U.S. and euro term loans

By Sara Rosenberg

New York, July 26 – UDG Healthcare/Huntsworth released price talk on its $1.94 billion seven-year first-lien term loan B (B1/B) and $470 million euro equivalent seven-year first-lien term loan B (B1/B) with its lender call on Monday, according to a market source.

The U.S. term loan is talked at Libor plus 400 basis points to 425 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 400 bps to 425 bps with a 0% floor and a discount of 99.5, the source said.

Call protection on the term loans is a 101 soft call for six months.

Commitments are due at noon ET on Aug. 5.

The company’s credit facilities also include a $400 million five-year revolver (B1/B) and a £330 million pre-placed eight-year second-lien term loan.

JPMorgan Chase Bank and Citigroup Global Markets Inc. are the physical bookrunners on the deal, with JPMorgan the left lead on the U.S. loan and Citigroup the left lead on the euro loan. Deutsche Bank is a lead bookrunner. Bank of Ireland, Barclays, HSBC, ING, Jefferies LLC and RBC Capital Markets are bookrunners. JPMorgan is the administrative agent.

Proceeds will be used to help fund the buyout of Dublin-based UDG by Clayton, Dubilier & Rice for £10.80 per share and combination with London-based Huntsworth, an existing CD&R portfolio company, to refinance certain existing debt at Huntsworth and UDG and to pay related fees and expenses.

UDG/Huntsworth is a provider of medical communications, marketing, advisory and packaging services to pharma and biotech clients.

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