Summit Health increases term loan amount to $1.78 billion

By Sara Rosenberg

New York, Nov. 18 – Summit Health (WP CityMD Bidco LLC) upsized its seven-year first-lien term loan to $1.784 billion from $1.684 billion, according to a market source.

Of the total term loan amount, $900 million, up from $800 million, is a fungible incremental tranche and $884 million is a repricing and extension of an existing term loan.

The original issue discount on the incremental tranche was tightened to 99.875 from 99.5, while the discount on the repricing tranche was unchanged at 99.875, the source said.

Pricing on the term loan remained at Libor plus 325 basis points with a 0.5% Libor floor, and the debt still has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC, Barclays, Goldman Sachs Bank USA, Jefferies LLC, Mizuho, ING, KeyBanc Capital Markets, Golub Capital and Regions Bank are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to fund tuck-in acquisitions and refinance existing debt.

The existing term loan that is being repriced is priced at Libor plus 375 bps with a 0.75% Libor floor, and the maturity is being extended from August 2026.

Summit is physician-owned multispecialty and urgent care medical practice.

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