HealthSouth sets price talk on $715 million credit facility

By Sara Rosenberg

New York, Feb. 3 - Price talk on HealthSouth Corp.'s $715 million five-year amended and restated credit facility surfaced as the deal launched via a bank meeting on Thursday, with the entire facility talked at Libor plus 275 basis points, according to a market source.

The facility consists of a $315 million term loan, a $250 million revolver and a $150 million letter-of-credit facility.

JPMorgan, Wachovia and Deutsche are the lead banks on the deal.

The $315 million term loan is essentially the amount that the company has outstanding under its existing revolver, and the $250 million revolver would be new liquidity for the company.

Security for the facility is stock in first tier subsidiaries and holding company assets.

With this amended and restated credit facility, the company would have the ability to pay off debt scheduled to come due in 2005.

HealthSouth is a Birmingham, Ala.-based healthcare services provider.

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