LHP Hospital lifts spread on $275 million term B to Libor plus 750 bps

By Sara Rosenberg

New York, June 26 - LHP Hospital Group Inc. raised pricing on its $275 million six-year term loan B to Libor plus 750 basis points from talk of Libor plus 675 bps to 700 bps, according to a market source.

Also, the original issue discount guidance widened to 96 to 97 from 98, and the soft call protection was changed to 102 in year one and 101 in year two from just 101 in year one, the source said.

The 1.5% Libor floor was left unchanged.

Recommitments are due at noon ET on Wednesday, the source added.

The $375 million senior secured credit facility (B3/B) also provides for a $100 million five-year revolver.

Included in the facility is a maximum total leverage ratio.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and Regions Bank are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for acquisitions.

LHP Hospital is a Plano, Texas-based provider of hospital capital and expertise to not-for-profit hospitals and hospital systems.

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