GoodRx shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 4 – GoodRx upsized its seven-year first-lien term loan (B1/B+) to $545 million from $520 million and downsized its privately placed second-lien term loan to $200 million from $225 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 300 basis points, the low end of revised talk of Libor plus 300 bps to 325 bps and down from initial talk in the range of Libor plus 350 bps to 375 bps, the source said.

Furthermore, the first-lien term loan now has a step-down to Libor plus 275 bps at 4 times net first-lien leverage, revised from two steps to be agreed upon.

In addition, the debt incurrence ratio was modified to 5.2 times due to increased net first-lien leverage from 5 times, and the excess cash flow sweep and asset sale sweep ratios under mandatory repayments were increased by 0.2 times to reflect the higher first-lien debt at close, the source continued.

The first-lien term loan still has a 0% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

Earlier in syndication, the discount on the first-lien term loan was changed from 99.5.

The company’s $785 million of credit facilities also include a $40 million revolver (B1/B+).

Goldman Sachs Bank USA, Barclays, Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, KKR Capital Markets, Citizens and SunTrust Robinson Humphrey Inc. are the leads on the deal.

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

Allocations are expected on Friday.

Proceeds will be used to help fund the acquisition of a significant minority stake in the company by Silver Lake Partners from existing owners Francisco Partners, Spectrum Equity and management.

GoodRx is a Santa Monica, Calif.-based operator of a prescription drug price comparison and coupon platform.

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