Apria outlines new revolver, $1 billion notes for purchase by Blackstone

By Sara Rosenberg

New York, July 24 - Apria Healthcare Group Inc. detailed the financing for its buyout by the Blackstone Group, including plans for a $150 million senior secured asset-based revolving credit facility or, under certain circumstances, a $100 million cash flow revolver, and the issuance of $1 billion in senior secured notes, according to a PREM14A filed with the Securities and Exchange Commission Thursday.

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

Borrowings under the revolver can be used for working capital and general corporate purposes. If the company gets the asset-based revolver, up to $30 million may be drawn at close as long as availability is not less than $75 million.

If the borrowing base under the asset-based revolver is less than $150 million but equal to or greater than $100 million, additional notes will be issued to make up for the shortfall.

As a backup for the notes, the company has received a commitment for a senior secured bridge loan.

Other financing will come from $700 million in equity.

Under the agreement, Apria shareholders will receive $21.00 in cash per share. The transaction is valued at about $1.6 billion.

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.

Shareholder approval will be solicited at a special meeting that could occur as early as September.

The marketing period to complete the financing will commence after the company has obtained stockholder approval, the filing said.

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

© 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.