TMF's deal comprises a €660m seven year cov-lite bullet term loan ‘B’ and a €90m six year multi-currency revolving credit facility.
The term loan is guided at 450bp over Euribor, offered at 99.5 with a 0% floor. The revolver is guided at 375bp over Euribor with a 0% floor.
The term loan has soft call protection at 101 for six months.
Ratings expected in due course.
The loans refinance €450m of floating rate notes due 2018, €195m of 9.875% senior notes due 2019 and a €70m revolving credit facility.
An investor said that TMF’s floating rate notes had traded “fine” since being signed in 2012.
“It looks a good credit,” he said. “I’ll be at the bank meeting.”
TMF had adjusted Ebitda of €64.5m for the first half of 2016, up 1.4% from 2015. Net leverage stood at 4.8 times.
Goldman Sachs and HSBC are global coordinators and bookrunners, UniCredit is also a bookrunner.
Doughty Hanson bought TMF in 2008, subsequently merging it with Equity Trust in 2011 to create TMF Group. Under Doughty’s ownership B2 rated TMF has made 25 add-on acquisitions in total.
It provides back office services to nearly half of the Fortune 500 companies, according to Doughty Hanson’s website.
Commitments are due September 29.
'Traded well'
Unilbas' deal comprises a €685m five year term loan ‘B’ and a €125m five year revolving credit facility.
The debt refinances its €355m 8.5% fixed rate senior secured notes, €130m of floating rate notes priced at 7.25% over Euribor and, partially, its €200m 12% second-lien PIK toggle notes, all signed in July 2013.
“Our analysts thought that other laboratory companies were stronger,” the investor added. “However Unilabs has traded well through the cycle and looks more attractive now.”
BNP Paribas, HSBC, JP Morgan and Nordea are arranging the deal.
Moody’s upgrade the outlook on Unilabs’ B3 rating to stable from negative in May as the firm delivered from over eight times Ebitda in 2014 to 6.7 times for the 12 months to March 2016.
The accruing interest on Unilabs’ PIK notes was cited as the main reason for Unilabs’ leveraged remaining elevated at 6.8 times over the next 12 to 18 months, suggesting the refinancing will be especially propitious to its credit profile.
Reported Ebitda in increased by 23.2% from €93.2 million in 2014 to €114.8 million in 2015, largely due to cost-cutting measures.
Unilabs is owned by Nordic Capital, which also owned healthcare provider Capio outright until listing it on the Nasdaq OMX Stockholm in June 2015, retaining a 25% stake.
Unilabs merged with Capio’s diagnostics division in 2008 and employs 4350 people.