RegionalCare Hospital Partners $490 million term loans price, allocate

By Paul A. Harris

Portland, Ore., April 21 - RegionalCare Hospital Partners, Inc. undertook allocations of $490 million of term loans on Monday, according to a market source.

A $275 million five-year first-lien term loan (B2/B+) priced at 99 with a 500 basis points spread to Libor. The reoffer price came on top of price talk. The spread came at the wide end of the 475 bps to 500 bps spread talk. The first-lien tranche was upsized from $250 million.

The first-lien loan features a 1% Libor floor, 101 soft call protection for one year and 1% annual amortization.

A $215 million 5.5-year second-lien term loan (Caa2/CCC+) priced at 98.5 with a 950 bps spread to Libor. The reoffer price came on top of price talk. The spread came 75 bps beyond the wide end of the 850 bps to 875 bps spread talk. The second-lien tranche was downsized from $240 million.

The second-lien term loan has a 1% Libor floor and one year of call protection, after which it is callable at 102 in year two and at 101 in year three.

The pro rata tranche is a $75 million 4.5-year revolver. The revolver was downsized from $85 million.

The overall size of the credit facility was decreased to $565 million from $575 million.

UBS was the left lead.

The Brentwood, Tenn.-based operator of general acute-care hospitals plans to use the proceeds to refinance debt.

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