RehabCare launches $625 million credit facility at Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 5 - RehabCare Group Inc. launched its $625 million senior secured credit facility (Ba3/BB) on Thursday morning with price talk of Libor plus 400 basis points, according to a market source.

The facility consists of a $125 million revolver and a $500 million term loan B.

The term loan B is being offered with an original issue discount of 98 and carries a 2% Libor floor, the source said.

Bank of America, RBC and BNP Paribas are the lead banks on the deal.

Proceeds will be used to help fund RehabCare's acquisition of Triumph HealthCare for a purchase price of $570 million.

The revolver is expected to be substantially unfunded at the close of the transaction.

Closing on the acquisition is expected to take place on Dec. 1, pending customary closing conditions, including regulatory approvals.

RehabCare is a St. Louis-based provider of physical rehabilitation services. Triumph HealthCare is a Houston-based developer and operator of long-term acute care hospitals.

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