FHC launches first-lien at Libor plus 350 bps, second-lien at Libor plus 750 bps

By Sara Rosenberg

New York, Oct. 26 - FHC Health Systems Inc. launched on Friday its cash flow revolver and first-lien term loan with price talk of Libor plus 350 basis points and its second-lien term loan with price talk of Libor plus 750 bps, according to a market source.

The $175 million six-year first-lien term is being offered with an original issue discount of 99 and carries 101 soft call protection for one year, the source said.

The $85 million 61/2-year second-lien term loan is being offered with an original issue discount of 99 and carries call protection of 102 in year one and 101 in year two, the source added.

The five-year cash flow revolver is sized at $10 million.

FHC's $290 million credit facility also includes a $20 million five-year asset-based revolver that is being held by Merrill Lynch.

Covenants include total leverage, interest coverage and capital expenditures.

Goldman Sachs is the lead bank on the credit facility.

Proceeds will be used to help back the buyout of the company by Crestview Partners.

Leverage through the first-lien debt is 2.3 times and leverage through the second-lien debt is 3.4 times.

Commitments are due from lenders on Nov. 9.

FHC Health Systems is a Norfolk, Va., provider of behavioral health care services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.