Groupe ELSAN SAS has launched a minimum-€350 million, seven-year term loan B add-on via BNP Paribas and KCM. A lender call will be held on Jan. 27, with commitments due on Feb. 5.

The new cov-lite non-fungible add-on will price in line with the borrower's existing facility due October 2024, at E+350 with a 0% floor. A ratchet moves the margin to E+325 if senior secured net leverage falls between 3.75x and 4.25x, and to E+300 if it falls below 3.75x. There is a six-month ratchet holiday.

The add-on also includes a sustainability-linked margin adjustment whereby the margin will ratchet by +/- 7.5 basis points depending on the firm reaching certain sustainability linked targets.

Proceeds from the new add-on will be used to partly finance Elsan's acquisition of C2S, a group of generalist clinics that the firm bought from Eurazeo Patrimoine late last year.

Lenders on the existing €1.4 billion term loan B have also been offered the opportunity to convert their existing commitments into the new seven-year tranche. The outstanding term loan was originally agreed back in 2015 to support the creation of Elsan through the merger of Vedici and Vitalia. Since then, the term loan has been increased to support various add-on acquisitions, and in 2019 the maturity was pushed out to October 2024. The existing term loan was trading in a 100/100.5 context before the latest add-on was announced.

Elsan is a French private healthcare group backed by KKR (43%), CVC (22%), Tethys (14%), and co-investors and management (21%).