MJH Life Sciences firms $650 million term loan at SOFR plus 350 bps

By Sara Rosenberg

New York, Jan. 25 – MJH Life Sciences finalized pricing on its $650 million seven-year term loan B at SOFR+CSA plus 350 basis points, the low end of revised talk of SOFR+CSA plus 350 bps to 375 bps and down from initial talk of SOFR+CSA plus 400 bps to 425 bps, according to a market source.

The term loan still has a 0.5% floor, an initial public offering-based pricing step-down, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, an original issue discount of 99.5 and 101 soft call protection for six months.

Earlier in syndication, the discount on the term loan firmed at the tight end of the 99 to 99.5 talk, leverage-based pricing step-downs were removed, MFN was changed to 50 bps with a 12-month sunset from 75 bps with a six-month sunset, the contribution debt basket was reduced to 100% from 200% and a requirement was added for quarterly lender calls.

The company’s $725 million of credit facilities (B2/B-) also include a $75 million revolver.

BofA Securities Inc. and PNC Bank are the leads on the deal.

Proceeds will be used to help fund the acquisition of a majority interest in the company by BDT Capital Partners LLC. The Hennessy Family, who founded the company, will continue to hold a significant minority ownership position.

MJH Life Sciences is a Cranbury, N.J.-based medical media company.

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