Ortho-Clinical Diagnostics firms $2.33 billion term B at 99.75 OID

By Sara Rosenberg

New York, May 31 – Ortho-Clinical Diagnostics set the original issue discount on its $2,325,000,000 seven-year term loan B at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the term loan is still Libor plus 325 basis points with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

The term loan continues to include a 25 bps step-down upon a qualified initial public offering, but now there is also a 25 bps step-down upon 3.75 times first-lien net leverage, the source said.

Another change was that the acquisition/investment carve-out was removed from the 50 bps MFN for 24 months.

The company’s $2,675,000,000 of credit facilities (B1/B-) also include a $350 million five-year revolver.

Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, ING, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Macquarie Capital (USA) Inc., RBS, Bank of Ireland and Nomura are the arrangers on the deal.

Final commitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing credit facilities.

The Carlyle Group is the sponsor.

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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