TeamHealth readies launch of $2.6 billion term loan B for Thursday

By Sara Rosenberg

New York, Jan. 3 – TeamHealth Holdings Inc. is scheduled to hold a bank meeting on Thursday to launch its proposed $2.6 billion seven-year term loan B, according to a market source.

Based on filings with the Securities and Exchange Commission, the company is also expected to get a $400 million revolver.

J.P. Morgan Securities LLC is the left lead on the $3 billion senior secured credit facility. Other parties that provided the debt commitment include Barclays, Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc. and PSP Investments Credit USA LLC.

Proceeds will be used to help fund the buyout of the company by Blackstone for $43.50 per share in cash. The transaction is valued at about $6.1 billion.

Other funds for the transaction will come from $1,015,000,000 in bonds, which are backed by a $1,015,000,000 senior unsecured bridge loan commitment, and $2.7 billion of equity.

Closing is expected this quarter, subject to stockholder approval, regulatory approvals and other customary conditions. The transaction is not subject to financing.

TeamHealth is a Knoxville, Tenn.-based physician services organization.

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