Medline firms $6.14 billion term loan at SOFR plus 275 bps

By Sara Rosenberg

New York, March 20 – Medline Borrower LP set pricing on its $6.143 billion first-lien term loan due Oct. 21, 2028 (B1/B+/BB-) at SOFR plus 275 basis points, the low end of the SOFR plus 275 bps to 300 bps talk, according to a market source.

Furthermore, the issue price on the term loan finalized at par, the tight end of the 99.875 to par talk, the source said.

As before, the term loan has a 0.5% floor, 101 soft call protection for six months, no CSA and no leverage-based pricing grid.

BofA Securities Inc., Goldman Sachs Bank USA and others are the arrangers on the deal.

Allocations are expected on Thursday, the source added.

Proceeds will be used to revise an existing term loan B due Oct. 21, 2028 that is priced at SOFR+CSA plus 300 bps with a 0.5% floor and includes a leverage-based pricing grid. Current CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

In connection with this transaction, the existing term loan is being paid down by $1 billion to roughly $6.143 billion with proceeds from a $1 billion senior secured notes offering.

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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