CHG Healthcare launches $530 million loan at SOFR plus 400-425 bps

By Sara Rosenberg

New York, Aug. 14 – CHG Healthcare launched on its lender call on Monday a $530 million incremental first-lien term loan due September 2028 (B2/B) that is talked at SOFR plus 400 basis points to 425 bps with a 0.5% floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for six months, amortization of 1% per annum and no CSA, the source said.

In addition, the term loan has ticking fees of half the margin from days 46 to 90 and the full margin thereafter.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are the lead arrangers on the deal.

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

Proceeds will be used to refinance the company’s existing second-lien notes and to fund a dividend.

Closing is expected on Oct. 2.

Ares, Leonard Green & Partners and GIC are the sponsors.

CHG is a Salt Lake City-based private health care staffing company that specializes in temporary physician staffing services.

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