MDVIP sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, Sept. 21 – MDVIP came out with price talk on its $500 million seven-year first-lien term loan (B2/B) and $185 million eight-year second-lien term loan (Caa2/CCC+) with its lender call on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with two 25 bps leverage-based step-downs, a 0.5% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 675 bps to 700 bps with a 0.5% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, Jefferies LLC, Societe Generale, KeyBank Capital Markets, KKR Capital Markets, Citizens Bank and Stone Point are the lead arrangers on the deal, with Goldman the left lead on the first-lien and Jefferies the left lead on the second-lien.

Commitments are due at noon ET on Sept. 30, the source added.

Proceeds will be used to help fund the buyout of the company by Goldman Sachs Asset Management and Charlesbank Capital Partners from Leonard Green & Partners and Summit Partners.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

MDVIP is a Boca Raton, Fla.-based provider of membership-based private health care services.

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