FHC Health firms $350 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Sept. 29 – FHC Health Systems Inc. set pricing on its $350 million seven-year first-lien term loan at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

The loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $415 million credit facility (B1/B+) also includes a $65 million five-year revolver.

Allocations are expected on Tuesday, the source said.

UBS AG, Goldman Sachs Bank USA, GE Capital Markets and Nomura are the joint bookrunners on the deal.

Proceeds will be used to help fund Beacon Health Strategies’ merger with ValueOptions Inc. to create FHC Health.

Closing is expected this fall, subject to regulatory review.

FHC Health is a Boston-based managed behavioral health care company.

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