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Insight Pharmaceuticals shifts funds between term loans, ups pricing
By Sara Rosenberg
New York, Aug. 16 - Insight Pharmaceuticals Corp. made a new round of changes to its credit facility, decreasing the first-lien term loan to $255 million from $290 million while increasing the second-lien term loan to $145 million from $110 million, and raising pricing on the tranches, according to a market source.
Pricing on the first-lien term loan was lifted to Libor plus 600 basis points from revised talk of Libor plus 550 bps and initial talk at launch of Libor plus 500 bps, the source said.
The first-lien term loan still has a 1.5% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year. The discount widened from 99 and the call protection was added at the time of the first pricing flex.
Meanwhile, pricing on the second-lien term loan moved to Libor plus 1,175 bps from Libor plus 900 bps and the discount was revised to 98 from 981/2, the source remarked.
The 1.5% Libor floor on the second-lien loan was left unchanged.
The second-lien debt is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four. This was sweetened from 103 in year one, 102 in year two and 101 in year three.
Also included in the $420 million credit facility is a $20 million revolver.
GE Capital Markets, SunTrust Robinson Humphrey Inc. and RBC Capital Markets LLC are the lead banks on the deal.
Proceeds will be used for acquisition financing.
The first-lien leverage is 3.1 times, down from 3.56 times as a result of the changes, the source added.
Insight is a Langhorne, Pa.-based marketer and distributor of branded over-the-counter pharmaceutical products.
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