Creganna-Tactx sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Nov. 6 – Creganna-Tactx Medical released price talk on its $185 million first-lien term loan and $90 million second-lien term loan with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 98˝, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $300 million credit facility also provides for a $25 million revolver.

Commitments are due on Nov. 20, the source added.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Bank of Ireland and Societe Generale are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Precision Wire Components LLC from the Riverside Co., and the combined company will be known as Creganna Medical.

First-lien leverage is 3.4 times, total leverage is 5.1 times and equity is more than 40% of the capitalization.

Closing is expected in early December, subject to regulatory approvals and other customary conditions.

Creganna-Tactx is a Galway, Ireland-based provider of medical device outsourcing solutions. Precision Wire is a Tualatin, Ore.-based producer of medical wires.

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