Matrix Medical ups term loan B to $330 million, flexes pricing

By Sara Rosenberg

New York, Feb. 7 – Matrix Medical upsized its seven-year first-lien term loan B to $330 million from $310 million and lowered pricing to Libor plus 475 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.

Also, the Libor floor on the term loan was reduced to 0% from 1% and the original issue discount was tightened to 99.75 from talk in the range of 99 to 99.5, the source said.

Furthermore, the MFN sunset was removed and a requirement for an annual lender call was added.

The term loan still has 101 soft call protection for six months.

The company’s now $350 million of credit facilities, up from $330 million, also include a $20 million revolver.

SunTrust Robinson Humphrey Inc. and Cantor Fitzgerald are the leads on the deal.

Recommitments were scheduled to be due at the end of the day on Wednesday.

Allocations are targeted for Friday, the source added.

Proceeds will be used to help fund the acquisition of HealthFair and to refinance existing debt.

The term loan upsizing is replacing a $20 million equity contribution.

Gross leverage is 4.34 times, and net leverage is 4.12 times.

Matrix is a Scottsdale, Ariz.-based provider of in-home care to help health plans balance cost and revenue, grow membership and improve the quality of care. HealthFair is a Winter Springs, Fla.-based provider of mobile health assessment and diagnostic testing services.

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