U.S. Renal sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, June 13 - U.S. Renal Care Inc. released price talk on its $305 million covenant-light first-lien term loan and $120 million covenant-light second-lien term loan with its Wednesday afternoon bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 500 basis points to 525 bps with a 1.25% Libor floor and an original issue discount of 981/2, and the second-lien term loan is talked at Libor plus 850 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $485 million credit facility also provides for a $60 million revolver.

Commitments are due on June 27, the source added.

Barclays Capital Inc., RBC Capital Markets LLC and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP from Cressey & Co.

U.S. Renal is a Dallas-based owner, operator and developer of dialysis centers.

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