Lead arrangers BofA Securities and PNC Capital Markets have finalized pricing on the $650 million term loan B backing the buyout of MJH Life Sciences LLC by BDT Capital Partners, according to sources. Accounts are being told to expect allocations today.

Final pricing for the seven-year TLB is at a spread of 350 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 99.5. The credit adjustment spread is set at 10 bps, 15 bps and 25 bps for one-, three- and six-month base rates, respectively. Lenders will receive six months of 101 soft call protection.

Initial price talk was a spread in the range of 400-425 bps and an OID of 99-99.50. A subsequent reverse-flex narrowed the spread range to 350-375 bps and removed leverage-based pricing step-downs. At final terms, the yield to maturity is 4.15%, versus 4.67%-5.02% under the original talk.

Corporate and facility ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. The borrower is MJH Healthcare Holdings LLC.

Additional financing for the deal includes a $75 million revolver with a springing first-lien net leverage covenant, rating agencies note.

BDT agreed in November 2021 to acquire a majority interest in MJH, and the Hennessy family, which founded the company, will continue to hold a significant minority ownership position.

MJH Life Sciences, headquartered in Cranbury, N.J., is a technology-enabled provider of a broad range of content, insights, information, marketing and other resources to the pharmaceutical, biotech and life sciences industries.