CHG lifts term loan to $580 million, firms at SOFR plus 375 bps

By Sara Rosenberg

New York, Aug. 17 – CHG Healthcare upsized its incremental first-lien term loan due September 2028 (B2/B) to $580 million from $530 million and set pricing at SOFR plus 375 basis points, the low end of revised talk of SOFR plus 375 bps to 400 bps and down from initial talk in the range of SOFR plus 400 bps to 425 bps, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 99, 101 soft call protection for six months, amortization of 1% per annum, no CSA, and ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Earlier in syndication, the discount on the term loan was tightened from 98.5.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are the lead arrangers on the deal.

Commitments continued to be due at 10 a.m. ET on Thursday, the source added.

Proceeds will be used to refinance the company’s existing second-lien notes and to fund a dividend.

Closing is expected on Oct. 2.

Ares, Leonard Green & Partners and GIC are the sponsors.

CHG is a Salt Lake City-based private health care staffing company that specializes in temporary physician staffing services.

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