Press Ganey sets Thursday launch for $220 million credit facility

By Sara Rosenberg

New York, Feb. 11 - Press Ganey Associates, Inc. has firmed up timing on its $220 million credit facility with the scheduling of a bank meeting for 10:30 a.m. ET Thursday in New York, according to a market source.

Previously it was known that the deal was targeted to launch late this week.

Lehman Brothers and GE Capital are the lead banks on the deal, with Lehman the left lead.

As was already reported, the facility consists of a $20 million revolving credit facility and a $200 million first-lien term loan.

Proceeds will be used to help fund Vestar Capital Partners' acquisition of a majority interest in the company from American Securities Capital Partners, LLC.

Other financing will come from $100 million of mezzanine debt being led by Lehman and ICG.

Also, Vestar and management are contributing more than 50% in equity.

First-lien leverage is around 3.8 times, and leverage through the mezzanine is around 5.75 times, the source added.

Press Ganey is a South Bend, Ind.-based provider of quality improvement solutions to hospitals and health care facilities.

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