TridentUSA reveals tranching, talk on $570 million credit facility

By Sara Rosenberg

New York, July 10 - TridentUSA Health Services released structural and pricing details on its $570 million credit facility that launched with a bank meeting on Wednesday afternoon, according to a market source.

The facility consists of a $75 million revolver (B1), a $340 million seven-year first-lien term loan (B1) and a $155 million 71/2-year second-lien term loan (Caa1), the source said.

Price talk on the first-lien term loan is Libor plus 450 basis points to 475 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1.25% Libor floor and a discount of 98, the source continued.

The first-lien loan has 101 soft call protection for one year, and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Amortization on the first-lien loan is 1% per year. There is no amortization on the second-lien loan.

Covenants include a maximum total net leverage ratio.

Mandatory prepayments are 50% of excess cash flow with step-downs to 25% and 0% at certain leverage levels, 100% of non-permitted debt issuances and 100% of asset sales with customary reinvestment rights, the source remarked.

The first-lien loan has a $50 million accordion feature plus additional amounts subject to a first-lien net leverage ratio not exceeding 4 times and 50 bps MFN, and the second-lien loan incremental is set at $25 million plus additional amounts subject to secured net leverage not exceeding 5.75 times and 50 bps MFN.

Commitments are due on July 19.

Citigroup Global Markets Inc., GE Capital Markets and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund the acquisition of Life Choice Hospice, and to monetize existing shareholders for the dilution of their ownership stakes via a new equity infusion from a group of new and existing investors, the source added.

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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