Galderma launches $400 million add-on term loan, repricing

By Sara Rosenberg

New York, March 10 – Galderma was scheduled to hold a lender call at 1 p.m. ET on Wednesday to launch a fungible $400 million covenant-lite add-on first-lien term loan due October 2026 and a repricing of its existing $2.53 billion covenant-lite first-lien term loan due October 2026, according to a market source.

Price talk on the term loan debt is Libor plus 400 basis points with a 25 bps step-down at 4.35x first-lien net leverage and a 0.75% Libor floor, the source said. The add-on term loan is talked with an original issue discount of 99.75, and the repricing is offered at par.

The term loan debt has 101 soft call protection for six months.

Expected term loan ratings are B2/B-/B.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on March 17, the source added.

Proceeds from the add-on term loan will be used to refinance a portion of the company’s existing euro loan tranche, and the repricing will take the existing U.S. term loan down from Libor plus 425 bps with a 1% Libor floor.

Galderma is a Switzerland-based skincare company offering medical and consumer skin health solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.