TridentUSA Health cuts second-lien loan to $89 million, ups spread

By Sara Rosenberg

New York, April 30 - TridentUSA Health Services reduced its 51/2-year second-lien term loan to $89 million from $100 million and increased pricing to Libor plus 1,050 basis points from Libor plus 900 bps, according to a market source.

Also, the original issue discount on the second-lien loan was tightened to 98 from 97, the source said.

The second-lien loan still has a 1.25% Libor floor and is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.

The company also downsized its four-year revolver to $42.5 million from $50 million but left pricing at Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 981/2, the source added.

And, the $175 million five-year first-lien term loan remained at Libor plus 525 bps with a 1.25% Libor floor and an original issue discount of 981/2. There is 101 repricing protection for one year on the tranche.

Credit Suisse Securities (USA) LLC, GE Capital Markets and Madison Capital are the lead banks on the now $306.5 million credit facility, down from $325 million.

Proceeds will be used to refinance $120 million of existing debt and pay a dividend to sponsors, Audax Group and Frazier Healthcare, of around $129 million. The dividend amount was reduced from roughly $140 million due to the second-lien loan downsizing.

TridentUSA is a Burbank, Calif.-based provider of bedside diagnostics services offering mobile x-ray, ultrasound, teleradiology and laboratory services to skilled nursing home, assisted living, home health care, hospice and correctional markets.

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