R1 RCM shifts funds between term loan B and term loan A

By Sara Rosenberg

New York, May 11 – R1 RCM Inc. downsized its seven-year senior secured term loan B (Ba2/B+/BBB-) to $500 million from $540 million and upsized its term loan A by $40 million, according to a market source.

Also, the company removed the 10 basis points CSA from the term loan B so there is no CSA and finalized the original issue discount at 99, the tight end of the 98.5 to 99 talk, the source said.

As before, the term loan B is priced at SOFR plus 300 bps with a 0.5% floor and has 101 soft call protection for six months.

Barclays, JPMorgan Chase Bank, BofA Securities Inc., Capital One, Wells Fargo Securities, US Bank, KeyBanc Capital Markets, PNC, Morgan Stanley Senior Funding Inc., HSBC Securities (USA) Inc. and Fifth Third are the bookrunners on the deal. BofA is the administrative agent.

Recommitments were scheduled to be due at 4:30 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Cloudmed, an Atlanta-based provider of revenue intelligence solutions for health care providers, from New Mountain Capital.

Closing is expected this quarter, subject to customary conditions.

R1 RCM is a Murray, Utah-based provider of technology-driven solutions that transform the patient experience and financial performance of health care providers.

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