TeamHealth launches $2.6 billion term loan B at Libor plus 325-350 bps

By Sara Rosenberg

New York, Jan. 5 – TeamHealth Holdings Inc. launched on Thursday its $2.6 billion seven-year covenant-light term loan B with price talk of Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $3 billion senior secured credit facility (B1/B) also includes a $400 million revolver.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Commitments are due on Jan. 17, the source added.

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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