Healogics upsizes second-lien loan, cuts first- and second-lien pricing

By Sara Rosenberg

New York, Jan. 30 - Healogics Inc. upsized its seven-year second-lien term loan (Caa1/CCC+) to $125 million from $110 million and reduced pricing to Libor plus 800 basis points from talk of Libor plus 825 bps to 850 bps, according to a market source.

The second-lien loan now has a step-down to Libor plus 775 bps when total adjusted leverage is less than 5 times.

Also, the original issue discount on the second-lien loan was tightened to 99 from 981/2, the source said.

In addition, the company reduced the coupon on its $290 million six-year first-lien term loan (B1/B) to Libor plus 400 bps from talk of Libor plus 425 bps to 450 bps, the source continued.

Pricing on the first-lien loan can now step-down to Libor plus 375 bps when total adjusted leverage is less than 5 times.

Furthermore, the original issue discount on the first-lien term loan was revised to 99½ from 99.

Both the first- and second-lien term loans still have 1.25% Libor floors.

As before, the first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's now $445 million credit facility, up from $430 million, also includes a $30 million revolver (B1/B).

RBC Capital Markets, GE Capital Markets Corp., BMO Capital Markets and Jefferies & Co. are leading the deal.

Proceeds will be used to refinance existing debt and to fund a distribution to shareholders.

Healogics is a Jacksonville, Fla.-based provider of outpatient wound care management services.

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