Accounts today received allocations of DuPage Medical Group Ltd.'s $650 million covenant-lite first-lien term loan due 2028 that priced at the tight end of talk at L+325, with a 0.75% Libor floor and an issue price of 99.5 via a Credit Suisse-led arranger group, according to sources. Pricing also includes a 25 bps margin step-down after 0.5x of net first-lien deleveraging. Proceeds from the deal, together with balance sheet cash, will be used to refinance the company's existing first-lien term loan due August 2024 (L+275, 0.75% floor) and second-lien term loan due August 2025 (L+700, 0.75% floor) and to fund a shareholder distribution. The dividend will total $209 million, according to Moody's. Additional financing includes a $100 million revolver. Ares Management-backed DuPage is an independent multispecialty physician group in the U.S. Terms:
| Borrower | DuPage Medical Group (Midwest Physician Administrative Services LLC) |
| Issue | $650 million term loan B |
| UoP | Dividend recapitalization |
| Spread | L+325 |
| Libor floor | 0.75% |
| Price | 99.50 |
| Tenor | 7-year |
| YTM | 4.15% |
| Four-year yield | 4.20% |
| Call protection | 101 soft call for 6 months |
| Corporate ratings | B/B2 |
| Facility ratings | B/B2 |
| Recovery ratings | 3 |
| Financial covenants | None |
| Arrangers | CS |
| Admin agent | CS |
| Px Talk | L+325-350/0.75%/99.5 |
| Sponsor | Ares Management |
| Notes | Margin step-down of 25 bps at 0.5x inside closing net first-lien leverage. |