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MultiPlan lifts term B to $3.47 billion, firms at Libor plus 400 bps
By Sara Rosenberg
New York, May 24 – MultiPlan Inc. upsized its seven-year covenant-light term loan B to $3.47 billion from $3.27 billion and set pricing at Libor plus 400 basis points, the tight end of the Libor plus 400 bps to 425 bps talk, according to a market source.
Also, a step-down was added to the term loan to Libor plus 375 bps when consolidated first-lien debt to consolidated EBITDA is 4.5 times or lower, the source said.
In addition, the original issue discount on the term loan was revised to 99.5 from 99, the 101 soft call protection was extended to one year from six months and the 12 month MFN sunset was eliminated.
The term loan still has a 1% Libor floor.
The company’s now $3.57 billion credit facility, up from $3.37 billion, also includes a $100 million five-year revolver.
Barclays, Goldman Sachs & Co., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and UBS Investment Bank are the bookrunners on the deal.
Recommitments were due at 5 p.m. ET on Tuesday, the source added.
Proceeds will be used to help fund the buyout of the company by Hellman & Friedman from Starr Investment Holdings LLC and Partners Group.
Other funds for the transaction will come from $1.1 billion of senior unsecured notes, downsized from $1.3 billion with the term loan B upsizing.
Upon closing, Starr and Partners Group will retain minority investments in the company on behalf of their clients. Also, GIC, Singapore’s Sovereign Wealth Fund, and Leonard Green & Partners will invest alongside Hellman & Friedman.
Senior secured leverage is 5.3 times and total leverage is 7 times.
MultiPlan is a New York-based provider of health care cost management solutions.
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