Orchid finalizes $485 million first-lien loan at Libor plus 450 bps

By Sara Rosenberg

New York, Feb. 27 – Orchid Orthopedic Solutions firmed pricing on its $485 million seven-year first-lien term loan (B2/B) at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, some documentation changes were made to the first-lien term loan, the source said.

As before, the first-lien term loan has a 25 bps leverage-based step-down, a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $745 million of credit facilities also include a $100 million revolver (B2/B) and a $160 million eight-year privately placed second-lien term loan.

Jefferies LLC, Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are the lead arrangers on the deal.

Recommitments were scheduled to be due at the end of the day on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Nordic Capital Partners from Altor Fund III, which will retain a significant minority holding in Orchid Orthopedic.

Closing is subject to customary regulatory approvals.

Orchid Orthopedic is a Holt, Mich.-based designer and manufacturer of medical devices.

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