Ernest Health ups spread on second-lien loan to Libor plus 850 bps

By Sara Rosenberg

New York, May 19 - Ernest Health Inc. increased pricing on its $54 million six-year second-lien term loan to Libor plus 850 basis points from Libor plus 800 bps, according to a market source.

As before, the second-lien loan has a 1.75% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three and was issued at an original issue discount of 981/2.

The company's $120 million five-year first-lien term loan and $30 million five-year revolver priced in line with talk at Libor plus 475 bps with a 1.5% Libor floor. The first-lien term loan was sold at a discount of 99.

CIT Group acted as the lead on the $204 million deal that closed on May 13.

Proceeds were used to refinance existing debt.

Leverage through the first lien is 3.5 times and through the second lien is 5 times.

Ernest Health is an Albuquerque, N.M.-based developer and operator of inpatient rehabilitation and related post-acute health care services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.