Ortho-Clinical lifts spread on term loan B to Libor plus 375 bps

By Sara Rosenberg

New York, May 8 - Ortho-Clinical Diagnostics Inc. increased pricing on its $2,175,000,000 seven-year covenant-light term loan B to Libor plus 375 basis points from Libor plus 350 bps, according to a market source.

In addition, the original issue discount on the term loan was set at 99, the wide end of the 99 to 99½ talk, the source said.

The term loan still has a 1% Libor floor, 101 soft call protection for one year and amortization of 1% per annum.

Earlier this week, the call protection was pushed out from six months, and the 50 bps MFN was set for life through the removal of the sunset provision.

Included in the term loan is a ticking fee of the full spread after 30 days, which was revised earlier this week from half the spread from days 46 to 75 post allocations and the full spread from days 76 through Aug. 12.

The company's $2,525,000,000 senior secured credit facility (B1/B) also includes a $350 million five-year revolver.

Recommitments were due at 1 p.m. ET on Thursday.

Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Securities LLC and Nomura are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group from Johnson & Johnson for $4.15 billion.

Other funds for the transaction will come from equity and bonds.

The senior unsecured notes offering was upsized by $150 million, and as a result, the equity contribution was reduced by the equivalent amount, the source added.

Closing is expected in the middle of this year, subject to customary regulatory approvals.

Ortho-Clinical Diagnostics is a Raritan, N.J.-based provider of services for screening, diagnosing, monitoring and confirming diseases.

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