Paradigm readies launch of $170 million of term loans for Tuesday

By Sara Rosenberg

New York, April 18 – Paradigm (Outcomes Group Holdings Inc.) is set to hold a lender call at 1 p.m. ET on Tuesday to launch $170 million of term loans, according to a market source.

Credit Suisse Securities (USA) LLC and Truist are the arrangers on the deal.

The debt consists a non-fungible $110 million incremental first-lien term loan due October 2025 and a non-fungible $60 million incremental second-lien term loan due October 2026, the source said.

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

Expected first-lien ratings are B2/B, and expected second-lien ratings are Caa2/CCC+.

Commitments are due at 5 p.m. ET on April 26, the source added.

Proceeds will be used to repay revolving credit facility borrowings and fund a distribution to shareholders.

With this transaction, the revolver maturity is being extended to April 2025 from October 2023.

Paradigm is a Walnut Creek, Calif.-based provider of complex and catastrophic case management to the workers’ compensation industry.

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