Vanguard Health upsizes term loan to $815 million, firms OID at 99

By Sara Rosenberg

New York, Jan. 21 - Vanguard Health Systems Inc. increased the size of its term loan to $815 million from $765 million and finalized the original issue discount at 99, the tight end of initial guidance of 98½ to 99, according to sources.

As before, pricing on the term loan is Libor plus 350 basis points with a 1½% Libor floor.

The change to the term loan size came on the heels of the company reducing its senior notes offering to $950 million from $1 billion.

Vanguard's now $1.075 billion credit facility (Ba2/B+) also includes a $260 million revolver that is priced at Libor plus 350 bps with a 1½% Libor floor as well.

Proceeds will be used to refinance debt.

Bank of America and Barclays are the lead banks on the deal that is expected to close on Jan. 29.

Commitments are due from lenders on Friday.

Vanguard is a Nashville, Tenn.-based owner and operator of acute care hospitals and complementary facilities and services.

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