Harvard Drug launches $345 million term B at Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 19 - Harvard Drug Group LLC launched on Thursday morning its $345 million seven-year term loan B with price talk of Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

Of the total term B amount, $45 million is available on a delayed-draw basis and includes a ticking fee of half the spread after 30 days from close, stepping up to the full spread after 60 days, the source said.

The entire term loan B has 101 soft call protection for one year.

The $380 million senior secured credit facility (B+) also includes a $35 million five-year revolver.

Commitments are due on Oct. 4, the source continued.

Morgan Stanley & Co. and Deutsche Bank Securities Inc. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance debt and finance the acquisition of the Rugby Group Inc. and another company.

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

© 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.