Hill-Rom ups term B to $800 million, sets spread at Libor plus 275 bps

By Sara Rosenberg

New York, July 29 – Hill-Rom Holdings Inc. upsized its seven-year term loan B to $800 million from $725 million and firmed pricing at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

Also, the original issue discount on the term loan B was revised to 99.75 from 99.5, the source said.

The term loan B still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $2.3 billion senior secured credit facility (Ba2), up from $2,225,000,000, also includes a $500 million revolver and a $1 billion term loan A.

Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citizens Bank and PNC Capital Markets LLC are the lead banks on the financing.

Proceeds will be used to help fund the acquisition of Welch Allyn Inc. for about $1,625,000,000 in cash and around 8.1 million newly issued shares of Hill-Rom common stock. The total transaction value is $2.05 billion.

Closing is expected before the end of September, subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.

Hill-Rom is a Chicago-based medical technology company. Welch Allyn is a Skaneateles Falls, N.Y.-based manufacturer of medical diagnostic equipment.

© 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.