Solis Mammography releases first- and second-lien term loan talk

By Sara Rosenberg

New York, March 23 – Solis Mammography (SM Wellness Holdings Inc.) announced price talk on its $300 million seven-year first-lien term loan (B2/B-), $50 million 18-month commitment delayed-draw first-lien term loan (B2/B-) and $100 million eight-year second-lien term loan (Caa2/CCC) in connection with its bank meeting on Tuesday, according to a market source.

Price talk on the funded and delayed-draw first-lien term loans, which are being sold as a strip, is Libor plus 425 basis points to 450 bps with one 25 bps leverage-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The delayed-draw term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

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

The company’s $475 million of senior secured credit facilities also provide for a $25 million five-year revolver (B2/B-).

Jefferies LLC is the arranger on the deal.

Commitments are due at noon ET on March 31, the source added.

Proceeds will be used to refinance the company’s existing capital structure.

Solis Mammography is an Addison, Tex.-based provider of mammography and related breast imaging services.

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