Deutsche Bank last Wednesday flexed down pricing 25 basis points on the oversubscribed first lien of the $848 million credit for Stiefel Laboratories, according to a banker. The deal now consists of a $623 million first-lien term loan priced at LIBOR plus 2 1/4%, down from LIBOR plus 2 1/2%. The $75 million revolver remains priced at LIBOR plus 2 1/2%. The $150 million second-lien term loan also remains at LIBOR plus 5% with call protection of 102, 101. Recommitments were due Friday.
The deal originally launched the first week in December to back the pharmaceutical manufacturer's $620 million acquisition of Connectics, another pharmaceutical company (CIN, 12/8). Standard & Poor's rated the loan's first lien B+ with a 2 recovery rating and the second lien B- with a 5 recovery rating. S&P noted that although the Coral Gables, Fla.-based company's debt to EBITDA will jump to 5.1 times, it should be able to generate excess cash flow and improve its credit measures rapidly over the next two years. Calls to spokeswomen for both companies were not returned.