MJH Life cuts $650 million term loan talk to SOFR plus 350-375 bps

By Sara Rosenberg

New York, Jan. 24 – MJH Life Sciences reduced price talk on its $650 million seven-year term loan B to a range of SOFR+CSA plus 350 basis points to 375 bps from a range of SOFR+CSA plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount talk on the term loan was revised to 99.5 from a range of 99 to 99.5, the source said.

In addition, leverage-based pricing step-downs were removed from the term loan and MFN was changed to 50 bps with a 12-month sunset from 75 bps with a six-month sunset.

Furthermore, the contribution debt basket was reduced to 100% from 200% and the company is now required to hold quarterly lender calls.

The term loan still has a 0.5% floor, an initial public offering-based pricing step-down, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

The company’s $725 million of credit facilities (B2/B-) include a $75 million revolver as well.

BofA Securities Inc. and PNC Bank are the leads on the deal.

Commitments continued to be due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of a majority interest in the company by BDT Capital Partners LLC. The Hennessy Family, who founded the company, will continue to hold a significant minority ownership position.

MJH Life Sciences is a Cranbury, N.J.-based medical media company.

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