FHC increases first-lien term loan price talk to Libor plus 400 bps to 450 bps

By Sara Rosenberg

New York, Nov. 9 - FHC Health Systems Inc. raised the price talk on its $175 million six-year first-lien term (B1/B+) to a range of Libor plus 400 basis points to 450 bps, from original talk at launch of Libor plus 350 bps, according to a market source.

The first-lien term is still being offered with an original issue discount of 99 and carries 101 soft call protection for one year.

FHC's $290 million credit facility also includes a $20 million five-year asset-based revolver that is being held by Merrill Lynch, a $10 million five-year cash flow revolver (B+) and an $85 million 61/2-year second-lien term loan (B3/CCC+).

The second-lien term loan is talked at Libor plus 750 bps, is offered with an original issue discount of 99 and carries call protection of 102 in year one and 101 in year two.

Covenants include total leverage, interest coverage and capital expenditures.

Goldman Sachs is the lead bank on the deal.

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.

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.