Halyard trims spread on $390 million term B to Libor plus 325 bps

By Sara Rosenberg

New York, Oct. 1 – Halyard Health Inc. reduced pricing on its $390 million seven-year senior secured term loan B to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Also, the ticking fee was revised to the full spread after 30 days from half the spread from days 31 to 60 and the full spread thereafter, the source said.

There is no MFN sunset in the loan.

The term loan B is still talked with a 0.75% Libor floor, an original issue discount of 99 to 99½ and 101 soft call protection for one year.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal (Ba2/BB).

Commitments are due at 12:30 p.m. ET on Thursday, the source added.

In addition to the term loan, the company plans on getting a $250 million senior secured revolver that is anticipated to be undrawn at closing.

Proceeds will be used to help fund the spinoff of the company from Kimberly-Clark Corp.

Other funds for the transaction will come from $250 million of senior unsecured notes.

The spinoff is expected to be completed at the end of October.

Halyard Health is an Alpharetta, Ga.-based health care company focused on preventing infection, eliminating pain and speeding recovery.

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