Galderma lifts add-on term loan to $600 million, trims spread

By Sara Rosenberg

New York, March 17 – Galderma upsized its fungible covenant-lite add-on first-lien term loan due October 2026 to $600 million from $400 million, according to a market source.

Also, pricing on the add-on term loan and repricing of the company’s existing $2.53 billion covenant-lite first-lien term loan due October 2026 was reduced to Libor plus 375 basis points from Libor plus 400 bps, the source said.

The term loan debt still has a 25 bps step-down at 4.35x first-lien net leverage, a 0.75% Libor floor and 101 soft call protection for six months.

As before, the add-on term loan has an original issue discount of 99.75, and the repricing is being issued at par.

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 11 a.m. ET on Thursday, 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.

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