Onex’s Carestream Said to Boost Rate on $2.5 Billion Payout Loan
Carestream Health Inc., the Onex Corp (OCX).-controlled provider of medical supplies and equipment, raised the rate on $2.5 billion of loans it’s seeking to pay a dividend and refinance debt, according to a person with knowledge of the matter.
A $1.85 billion first-lien piece will pay interest at 4 percentage points more than the London interbank offered rate with a 1 percent minimum, up from 3.25 percentage points to 3.5 percentage points initially proposed, said the person who asked not to be identified because the terms are private. The debt will be sold to investors at 98.5 cents on the dollar, compared with 99 cents previously offered.
A $500 million second-lien portion will pay interest at 8.5 percentage points more than Libor with a 1 percent minimum on the lending benchmark, up from 7.5 percentage points initially proposed, the person said. It will be offered to lenders at 98 cents, compared with 99 cents initially.
Lenders must submit commitments to Credit Suisse Group AG, the bank arranging the financing, by noon tomorrow, the person said. The deal includes a $150 million revolving line of credit.
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