RegionalCare firms first-lien term loan spread at Libor plus 650 bps

By Sara Rosenberg

New York, Nov. 2 - RegionalCare Hospital Partners Inc. set pricing on its $295 million seven-year first-lien term loan B (B2/B) at Libor plus 650 basis points, the wide end of the Libor plus 625 to 650 bps talk, according to a market source.

Also coming at the wide end was the original issue discount, which is set at 96, versus talk of 96 to 97, the source said.

As before, the loan has a 1.5% Libor floor and 101 soft call protection for one year.

The company's $460 million senior secured credit facility also includes a $100 million five-year revolver (B2/B) and a $65 million 71/2-year second-lien term loan (CCC+).

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

Allocations are expected to go out on Thursday.

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

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.

© 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.