ContextMedia flexes $325 million term loan B to Libor plus 650 bps

By Sara Rosenberg

New York, Dec. 20 – ContextMedia Health LLC increased pricing on its $325 million five-year term loan B to Libor plus 650 basis points from talk of Libor plus 550 bps to 575 bps, according to a market source.

Also, the original issue discount on the term loan widened to 90 from talk of 98.5 to 99 and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, the first-lien leverage covenant was changed to 6 times with step-downs from 6.5 times.

The term loan still has a 1% Libor floor.

The company’s $375 million credit facility (B2/B) also includes a $50 million revolver.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA and Citizens Bank are the leads on the deal.

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

Proceeds will be used to fund the acquisition of AccentHealth LLC from M/C Partners, Ridgemont Equity Partners and senior management.

Closing is expected by year-end, subject to customary conditions.

ContextMedia is a health care decision platform. AccentHealth is a New York and Tampa, Fla.-based provider of best-in-class patient education at the point of care.

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