Acelity shifts funds between U.S. and euro term loans, updates pricing

By Sara Rosenberg

New York, Jan. 26 – Acelity LP Inc. downsized its U.S. covenant-light term loan to $1,085,000,000 from $1,115,000,000 and upsized its euro covenant-light term loan to €239 million from $225 million euro-equivalent, according to a market source.

Additionally, pricing on the U.S. term loan was set at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk and pricing on the euro term loan was reduced to Euribor plus 300 bps from talk of Euribor plus 325 bps to 350 bps, the source said.

Furthermore, the original issue discount on the euro term loan was changed to 99.75 from 99.5, and the 101 soft call protection on both tranches was extended to one year from six months.

Both term loans still have a 1% floor and the U.S. term loan still has an original issue discount of 99.5.

Bank of America Merrill Lynch is the left lead on the deal (B1).

Commitments for the U.S. term loan were due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to help refinance existing term loans due in 2020 and 9 5/8% second-lien notes.

Other funds for the refinancing will come from some of the proceeds from the sale of Acelity’s LifeCell business to Allergan for $2.9 billion in cash.

Acelity is a San Antonio-based advanced wound care and regenerative medicine company.

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