Covenant Surgical cuts term loans spread to Libor plus 475 bps

By Sara Rosenberg

New York, Sept. 28 – Covenant Surgical Partners Inc. trimmed pricing on its $150 million seven-year first-lien term loan (B3/B-) and $45 million delayed-draw first-lien term loan (B3/B-) to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.

In addition, the original issue discount on the term debt was tightened to 99.75 from 99, the source said.

As before, the term loan debt has a 0% Libor floor, 101 soft call protection for six months and a maximum total leverage covenant of 8.5 times, stepping down to 7.5 times at seventh quarter post-close and 6.5 times at 17th quarter post-close.

The company’s $220 million of credit facilities also include a $25 million revolver (Ba3/B+).

Goldman Sachs Bank USA and KKR Capital Markets are the leads on the debt.

Commitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by KKR from DFW Capital Partners, Iroquois Capital Group, PineBridge Investments and other existing shareholders.

Closing is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Covenant Surgical is a Nashville, Tenn.-based acquirer and operator of ambulatory surgery centers and physician practices.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.