Health Management lifts term loan B to $1.4 billion, cuts price talk

By Paul A. Harris

Portland, Ore., Nov. 9 - Health Management Associates Inc. upsized its seven-year term loan B to $1.4 billion from $1.2 billion and lowered price talk on Wednesday, according to an informed source.

Spread talk decreased to Libor plus 350 basis points from Libor plus 375 bps. The Libor floor dropped to 1% from 1.25%. Discount talk remained unchanged at 99, and the deal retains its 101 soft call protection for one year.

The five-year term loan A was downsized to $725 million from $1 billion. The term loan A and a $500 million five-year revolver are talked at Libor plus 275 bps.

The overall size of the credit facility (Ba3/BB-/BB+) was decreased to $2.625 billion from $2.7 billion.

The dealers moved up the commitment deadline to Wednesday. Previously the due date was expected to be Nov. 16.

On Tuesday the company downsized its new issue of 7 3/8% notes to $875 million from $1 billion.

Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc. and Barclays Capital Inc. are the joint lead arrangers on the deal, with Wells Fargo and Deutsche Bank the bookrunners. RBS Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the senior managing agents.

Proceeds will be used to help refinance existing credit facility borrowings and for general corporate purposes.

Other funds for the refinancing will come from $1 billion of senior unsecured notes.

Health Management is a Naples, Fla.-based operator of acute care hospitals.

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