Gastro talks $400 million of first-lien loans at Libor plus 450 bps

By Sara Rosenberg

New York, June 16 – Gastro Health launched on Wednesday its $300 million first-lien term loan (B-) and $100 million delayed-draw first-lien term loan (B-) with price talk of Libor plus 450 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

The company’s $550 million of credit facilities also include a $60 million revolver (B-) and a $90 million privately placed second-lien term loan (CCC).

BMO Capital Markets and Antares Capital are the leads on the deal.

Commitments are due at noon ET on June 30, the source added.

Proceeds will be used to help fund the buyout of the company by Omers.

Closing is expected this quarter, subject to certain conditions, including regulatory approvals.

Gastro Health is a Miami-based platform supporting medical groups specializing in the treatment of gastrointestinal disorders, nutrition and digestive health.

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