Eating Recovery flexes $190 million term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 25 – Eating Recovery Center increased pricing on its $190 million seven-year covenant-light first-lien term loan to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

In addition, the MFN was reduced to 50 bps from 75 bps and the sunset was removed, the source said.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $325 million of senior credit facilities also include a $30 million five-year revolver, a $30 million seven-year delayed-draw term loan and a $75 million privately placed second-lien term loan.

The delayed-draw term loan has a ticking fee of 50 bps for the first 60 days, 200 bps for days 61 to 180, 300 bps for days 181 to 365, and 450 bps thereafter.

Antares Capital LP and Golub Capital Markets LLC are the leads on the deal that allocated on Tuesday.

Proceeds will be used to help fund the acquisition of a controlling stake in the company by CCMP Capital Advisors LP from Lee Equity Partners and certain other investors.

Closing is expected in the third quarter, subject to customary conditions.

Eating Recovery Center is a Denver-based provider of comprehensive treatment for eating disorders.

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