U.S. Renal sets first- and second-lien loan offer prices with launch

By Sara Rosenberg

New York, March 19 - U.S. Renal Care Inc. launched on Wednesday its $225 million incremental first-lien term loan due July 3, 2019 with original issue discount talk of 99½ and its $25 million incremental second-lien term loan due Jan. 3, 2020 with a par offer price, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 1% Libor floor and pricing on the second-lien term loan is priced at Libor plus 750 bps with a 1% Libor floor, both in line with the existing first- and second-lien loans.

The incremental and existing first-lien term loan will get 101 soft call protection for six months, and the second-lien is non-callable through August, then at 102 for a year and 101 for a year, the source said.

Also, second-lien loan lenders are being offered a 25 bps amendment fee.

Commitments are due on March 26, the source added.

Barclays, RBC Capital Markets, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners on the $250 million of covenant-light term loan debt deal.

Proceeds will be used to fund a dividend.

U.S. Renal is a Plano, Texas-based provider of dialysis services.

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