MedSolutions cuts term B to $300 million, flexes to Libor plus 525 bps

By Sara Rosenberg

New York, June 20 - MedSolutions downsized its six-year term loan B to $300 million from $360 million and lifted pricing to Libor plus 525 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount was set at 99, the high end of the 99 to 99½ talk, and a total net debt covenant was added to the previously covenant-light deal, the source said.

The B loan still has a 1.25% Libor floor and 101 soft call protection for six months.

In addition to the term loan, the company's now $375 million credit facility, down from $435 million, includes a $75 million five-year revolver.

Recommitments are due on June 27, the source added.

SunTrust Robinson Humphrey Inc. and Fifth Third Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend, the size of which was reduced due to the term loan B downsizing.

MedSolutions is a Franklin, Tenn.-based provider of medical cost management services.

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