Zelis Payments trims delayed-draw term loan to $200 million

By Sara Rosenberg

New York, Oct. 1 – Zelis Payments Buyer Inc. downsized its delayed-draw covenant-lite term loan due Sept. 30, 2026 to $200 million from $300 million and shortened the availability to one year from two years, according to a market source.

Also, the original issue discount on the delayed-draw term loan and the company’s $550 million senior secured covenant-lite term loan B due Sept. 30, 2026 was set at 99.27, compared to talk in the range of 99 to 99.25, the source said.

Furthermore, delayed-draw term loan ticking fees were changed to half the margin from days 31 to 60 and the full margin thereafter from half the margin from days 61 to 120 and the full margin thereafter.

Pricing on the term loan debt remained at Libor plus 350 basis points with a 0% Libor floor, and the debt still has 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc. is the left lead arranger on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds from the term loan B will be used to fund the acquisition of Sapphire Digital as well as transaction fees and expenses, and the delayed-draw term loan will be used to fund future acquisitions, capital expenditure, or other investments, and the payment of related fees and expenses.

Closing is expected in the fourth quarter.

Zelis is a Bedminster, N.J.-based health care and financial technology company. Sapphire is a provider of a health care consumer shopping and navigation platform.

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