Matrix Medical plans new term loan with investment by Frazier

By Sara Rosenberg

New York, Aug. 29 – Matrix Medical Network received a commitment for a new term loan to help fund the acquisition by Frazier Healthcare Partners of a 60% equity interest in the company from Providence Service Corp., according to an 8-K filed with the Securities and Exchange Commission on Monday.

SunTrust Robinson Humphrey Inc. is the lead bank on the debt.

In the filing, sources for the transaction were outlined as $238 million in Matrix debt and $179.7 million in equity.

Under the agreement, Providence will receive gross cash proceeds from Matrix of around $418 million before transaction fees and retain a 40% equity interest in the company. The transaction values Matrix at about $537.5 million.

Providence intends to use the cash proceeds from the sale to repay in full its term loan and swingline credit facilities, and for acquisitions, investments in the long-term development of its other businesses and the return of capital to stockholders through a share buyback program.

Closing is expected in the fourth quarter, subject to customary conditions.

Matrix Medical is a Scottsdale, Ariz.-based provider of high-touch, in-home care to help health plans balance cost and revenue, grow membership and improve the quality of care.

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