MedRisk tightens pricing below talk on first-, second-lien term loans

New York, Jan. 24 – MedRisk LLC trimmed pricing on its $445 million seven-year first-lien term loan and $200 million eight-year second-lien term loan, according to a market source.

The first-lien loan (B2/B) is now priced at Libor plus 300 basis points with an original issue discount of 99.75 and a 0% Libor floor, tighter than talk of Libor plus 325 bps to 350 bps and an original issue discount of 99.5.

For the second-lien loan (Caa2/CCC+), pricing is Libor plus 675 bps with an original issue discount of 99.5 and a 0% Libor floor, reduced from talk of Libor plus 725 bps to 750 bps and a discount of 99.

Changes to orders were due by 2 p.m. ET on Wednesday.

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

The company’s $705 million senior secured credit facility also includes a $60 million five-year revolver (B2/B).

Jefferies LLC, Antares Capital, Barclays and Nomura are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group from TA Associates.

Other funds for the transaction will come from equity.

MedRisk is a King of Prussia, Pa.-based provider of physical medicine solutions to the workers’ compensation industry.

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