Harvard Drug tightens OID on $182 million of term loan debt to 99

By Sara Rosenberg

New York, April 22 - Harvard Drug Group LLC reduced the original issue discount on its $160 million six-year term loan and $22 million delayed-draw term loan to 99 from 981/2, according to a market source.

Pricing on the term loans was left unchanged at Libor plus 450 basis points. A step down, however, was added under which the spread can drop to Libor plus 425 bps when leverage falls below 2.5 times, the source said.

The 2% Libor floor was left intact.

Credit Suisse and UBS are the lead banks on the $202 million senior secured deal (B1/B+), which also includes a $20 million revolver.

Proceeds will be used to help fund the already completed buyout of the company by Court Square Capital from H.I.G. Capital LLC.

Harvard Drug is a Livonia, Mich.-based independent pharmaceutical distributor.

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