MedRisk updates pricing on $750 million first-lien term loan

By Sara Rosenberg

New York, March 31 – MedRisk finalized pricing on its $750 million first-lien term loan (B2/B) at Libor plus 375 basis points, the high end of the Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the Libor floor on the term loan was increased to 0.75% from 0.5% and the original issue discount widened to 99 from 99.5, the source said.

The term loan still has 101 soft call protection for six months.

Commitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday morning.

The company’s $1.15 billion of credit facilities also include a $100 million revolver (B2/B) and a $300 million privately placed second-lien term loan.

UBS Investment Bank, BofA Securities Inc., Macquarie Capital (USA) Inc., Truist and Societe Generale are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by CVC Capital Partners.

Closing is expected in the second quarter, subject to customary conditions and receipt of required regulatory approvals.

The Carlyle Group, MedRisk’s current majority owner, will retain a significant stake and maintain joint control in partnership with CVC.

MedRisk is a King of Prussia, Pa.-based provider of managed physical medicine services for the workers’ compensation industry.

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