Apria launches $150 million asset-based revolver at Libor plus 275 bps

By Sara Rosenberg

New York, Oct. 2 - Apria Healthcare Group Inc. launched its proposed $150 million senior secured asset-based revolving credit facility on Thursday with opening price talk of Libor plus 275 basis points, according to a market source.

Bank of America, Wachovia and Barclays are the lead banks on the deal.

Pricing on the revolver can vary based on availability, the source said.

The revolver is being obtained in connection with the company's buyout by the Blackstone Group for $21.00 per share in cash. The transaction is valued at about $1.6 billion.

Borrowings under the revolver can be used for working capital and general corporate purposes. Up to $30 million may be drawn under the revolver at close as long as availability is not less than $75 million.

Other financing for the buyout will come from $700 million in equity and the issuance of $1 billion of senior secured notes, which is backed by a senior secured bridge loan.

The acquisition is expected to close in the second half of 2008, subject to customary closing conditions, including approval by Apria's shareholders and termination of the Hart-Scott-Rodino regulatory waiting period, which was already obtained.

Apria is a Lake Forest, Calif., home health care services company.

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