Oversubscribed Envision deal could tighten, accelerate; Encino prices wide

By Paul A. Harris

Portland, Ore., Sept. 24 – In Monday's leveraged loan market Envision Healthcare Corp.'s $5.05 billion term loan was heard to be oversubscribed, holding out the possibility that the deal's timeline could shorten and pricing could tighten.

The deal launched last week with price talk of Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99 to 99.5.

At the time of launch, commitments were due at 5 p.m. ET on Oct. 1.

Meanwhile a $1,625,000,000 offering of eight-year senior notes kicked off Monday with initial price talk in the high 8% area.

Proceeds from the loan and bonds will be used to help fund the buyout of the company by KKR for $46.00 per share in cash, or about $9.9 billion including the assumption or repayment of debt.

And Encino Acquisition Partners Holdings LLC priced its $550 million seven-year senior secured second-lien term loan (//BB-) with a 675 bps spread to Libor at 99, 50 bps wide of spread talk.

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