Script Relief launches $205 million term loan B to investors

By Sara Rosenberg

New York, April 29 – Script Relief LLC launched with its bank meeting on Wednesday a $205 million seven-year senior secured first-lien covenant-light term loan B, according to a market source.

Citigroup Global Markets Inc. is the lead on the deal.

Price talk on the term loan B is Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for one year and amortization of 1% per annum.

Included in the loan is a $75 million accordion plus unlimited amounts subject to a closing date senior secured leverage test and 50 bps MFN.

Mandatory prepayments are 100% of net proceeds from asset sales incurred in the non-ordinary course of business, subject to re-investment rights, 100% of net proceeds from debt incurred that is prohibited under the credit agreement, 100% of net proceeds from casualty and condemnation, and 50% of excess cash flow subject to step-downs to 25% if the senior secured leverage ratio is less than 4 times and 0% if the senior secured leverage ratio is less than 3.5 times.

Commitments are due at 5 p.m. ET on May 8, the source added.

Proceeds will be used to fund a dividend.

Closing is expected on May 15.

Script Relief is a New York-based provider of pharmacy discount cards.

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