ResCare sets pricing on $190 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, Dec. 20 - ResCare Inc. increased pricing on its $190 million term loan B (Ba2/B+) to Libor plus 550 basis points from most recent guidance in the Libor plus low-500 bps area and from initial talk at launch of Libor plus 450 bps to 475 bps, according to a market source.

Also, the Libor floor was increased to 1.75% from 1.5% and the original issue discount widened to 98 from 981/2, the source said.

The B loan now includes 101 soft call protection for one year.

J.P. Morgan Securities LLC and Bank of America are the lead banks on the deal, with JPMorgan the left lead.

Proceeds, along with $200 million of 10¾% notes, will be used to refinance existing debt, repay a portion of the amounts used to purchase the company's common shares in the tender offer by Onex ResCare Acquisition LLC and fund the purchase of any remaining ResCare shares by Onex through a second-step share exchange.

ResCare is a Louisville, Ky.-based provider of home care to the elderly and persons with disabilities.

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