Ortho-Clinical places add-on term B with investors, cancels call

By Sara Rosenberg

New York, May 22 – Ortho-Clinical Diagnostics placed its proposed $200 million incremental senior secured term loan B (B1) due June 30, 2021 with investors and cancelled the 2 p.m. ET lender call that was supposed to take place on Monday to launch the loan into syndication, according to a market source.

In connection with the add-on term loan B, the company is launching lender friendly amendments that include limiting certain restricted payments until total leverage is below 6.5 times and increasing amortization on the existing and fungible add-on term loan B to 2% in 2018 and 2019 and 2.5% in 2020 and 2021, the source said.

Amendment consents are due at noon ET on Friday.

Also, the company is continuing to pursue an extension of its existing revolving credit facility to June 2021, the source added.

Barclays is the lead bank on the deal.

Proceeds from the add-on term loan B will be used to repay borrowings under the company’s revolver.

Ortho-Clinical Diagnostics is a Raritan, N.J.-based provider of in-vitro diagnostics solutions for screening, diagnosing and monitoring diseases.

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