RegionalCare reveals structure on $460 million credit facility

By Sara Rosenberg

New York, Oct. 17 - RegionalCare Hospital Partners Inc. disclosed that its senior secured credit facility is sized at $460 million, and details on tranching emerged too, as the deal was launched on Monday morning, according to a market source.

The facility comprises a $100 million five-year revolver, a $295 million seven-year first-lien term loan B and a $65 million 71/2-year second-lien term loan, the source said.

Price talk is expected to be announced after ratings come out, the source added.

The second-lien term loan is already spoken for by a third party.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Commitments are due Oct. 31.

Proceeds will be used to help fund the purchase of Essent Healthcare from Vestar Capital Partners and Cressey & Co.

Net first-lien leverage is 3.38 times and net total leverage is 4.3 times. First-lien leverage is 4.1 times and total leverage is 5.0 times.

Closing is expected by the fourth quarter, subject to customary regulatory reviews and approvals.

RegionalCare is a Brentwood, Tenn.-based owner and operator of four non-urban hospitals. Essent is a Nashville-based owner and operator of three non-urban acute care hospitals.

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