Summit Behavioral launches $200 million term loan at 98.5-99

By Sara Rosenberg

New York, Dec. 11 – Summit Behavioral Healthcare LLC was scheduled to hold a lender call at 2 p.m. ET on Monday to launch a fungible $200 million incremental first-lien term loan due Nov. 24, 2028 that is talked with an original issue discount of 98.5 to 99, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 475 basis points with a 0.75% floor.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Expected term loan ratings are B3/B-.

Jefferies LLC is the left lead arranger on the deal.

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used to refinance the company’s existing second-lien term loan.

Pro forma for the transaction, the first-lien term loan will total $799,865,000.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

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