Sharp finalizes $465.5 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 14 – Sharp Midco LLC firmed pricing on its $465.5 million first-lien term loan B due 2028 (B2/B-) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

Furthermore, the original issue discount on the term loan was tightened to 99.75 from 99, the source said.

Also, MFN was changed to 50 bps for 12 months from 75 bps for six months, the “no worse” prong and inside maturity basket were removed from incremental facility, asset sale step-downs were modified, the EBITDA definition was revised and there is now a requirement for quarterly management discussion and analysis.

The term loan still has 25 bps step-down upon an initial public offering, a 0.5% Libor floor and 101 soft call protection for six months.

JPMorgan Chase Bank, RBC Capital Markets, Barclays and ING are the lead arrangers on the deal. JPMorgan is the administrative agent.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used to help fund the spinoff of the company from UDG Healthcare Ltd.

Sharp is a provider of clinical supply chain services and contract pharmaceutical packaging.

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