Shields Health finalizes $200 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Aug. 14 – Shields Health Solutions Holdings LLC set pricing on its $200 million seven-year covenant-lite first-lien term loan at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $215 million of credit facilities (B3/B-) also include a $15 million revolver.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by Welsh, Carson, Anderson & Stowe.

As part of this transaction, Walgreen Co., a drugstore chain, is also making an equity investment in Shields Health.

Closing is expected in the third quarter, subject to customary regulatory reviews.

Shields Health is a Stoughton, Mass.-based specialty pharmacy integrator and care provider, partnering with hospitals on specialty pharmacy creation, growth and management.

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