Renal Advantage talks $400 million facility at Libor plus 450 bps

By Sara Rosenberg

New York, Nov. 16 - Renal Advantage launched its $400 million credit facility on Tuesday with price talk of Libor plus 450 basis points with a 1.5% Libor floor, according to a market source.

The facility consists of a $50 million revolver and a $350 million term loan.

The term loan is being offered at an original issue discount of 981/2, the source said.

Barclays and Bank of America are the lead banks on the deal.

Proceeds, along with $206 million of mezzanine debt, will be used to help fund the company's merger with Liberty Dialysis.

Closing on the merger is expected to occur by Dec. 31.

Leverage through the first-lien is 3.6 times and net leverage through the mezzanine is 5.6 times.

Brentwood, Tenn.-based Renal Advantage and Mercer Island, Wash.-based Liberty Dialysis are providers of dialysis services.

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