MD Beauty $178 million in first-, second-lien add-ons to launch Friday

By Sara Rosenberg

New York, Sept. 13 - MD Beauty Inc. is scheduled to hold a conference call on Friday to launch a total of $178 million of incremental bank debt that will be tacked on to its first- and second-lien term loans, according to a buyside source.

Furthermore, in connection with the add-ons, the syndicate plans to increase pricing on the second-lien term loan by 50 basis points, while leaving pricing on the first-lien term loan unchanged, the source said.

More specifically, the company is looking to upsize its first-lien term loan by $86 million, with pricing on the tranche remaining at Libor plus 325 bps.

Meanwhile, the $54 million second-lien term loan will be upsized by $92 million, with pricing on the $146 million of second-lien debt increasing to Libor plus 700 bps from Libor plus 650 bps, the source said.

"As far as I know, it's only going out to existing guys," the source added on syndication of the add-ons.

Proceeds will be used to fund a dividend payment.

BNP Paribas is the lead bank on the deal.

MD Beauty, a portfolio company of JH Partners and Berkshire Partners, is a San Francisco personal care company.

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