RegionalCare shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, April 9 - RegionalCare Hospital Partners (RCHP Inc.) upsized its five-year first-lien term loan (B2/B+) to $275 million from $250 million and downsized its 51/2-year second-lien term loan (Caa2/CCC+) to $215 million from $240 million, according to a market source.

In addition, pricing on the first-lien term loan firmed at Libor plus 500 basis points, the wide end of the Libor plus 475 bps to 500 bps talk, and pricing on the second-lien term loan was increased to Libor plus 950 bps from talk of Libor plus 850 bps to 875 bps, the source said.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99, 101 soft call protection for one year and amortization of 1% per annum, and the second-lien term loan still has a 1% Libor floor, a discount of 98½ and call protection of non-callable for one year, then at 102 in year two and 101 in year three.

The company's $575 million credit facility also includes an $85 million 41/2-year revolver (B2/B+).

Allocations are expected to go out later this week, the source added.

UBS Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

RegionalCare is a Brentwood, Tenn.-based operator of general acute-care hospitals.

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