Walgreens Infusion revises discount on $415 million term loan to 99˝

By Sara Rosenberg

New York, March 24 – Walgreens Infusion Services tightened the original issue discount on its $415 million seven-year term loan B to 99˝ from 99, according to a market source.

Also, while pricing remained at Libor plus 500 basis points, a step-down was added to Libor plus 475 bps at 3.5 times first-lien leverage, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

The company’s $495 million credit facility (B2/B) also includes an $80 million revolver.

Commitments were due at 5 p.m. ET on Tuesday, the source added.

Bank of America Merrill Lynch, Barclays, Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners from Walgreen Co.

Other funds for the transaction will come from $150 million of second-lien debt placed with Goldman Sachs Mezzanine and equity.

Closing is expected in the second quarter, subject to satisfaction of regulatory requirements and other conditions.

Walgreens Infusion Services is a provider of home and alternate treatment site infusion services.

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