Upstream Rehab to launch $310 million incremental term loan Wednesday

By Sara Rosenberg

New York, July 13 – Upstream Rehab (Upstream Holdco Inc.) is scheduled to hold a lender call at noon ET on Wednesday to launch a fungible $310 million covenant-lite incremental first-lien term loan due November 2026, according to a market source.

Credit Suisse Securities (USA) LLC is the lead on the deal.

Pricing on the incremental term loan is Libor plus 450 basis points with a 25 bps step-down at 5.65x total net leverage and a 0% Libor floor, in line with existing first-lien term loan pricing.

Original issue discount talk on the incremental term loan is not yet available.

The incremental term loan is getting 101 soft call protection for six months, the source said.

Expected term loan ratings are B2/B.

Commitments are due at 5 p.m. ET on July 21, the source added.

Proceeds will be used to fund the acquisition of Results Physiotherapy, a Nashville-based provider of physical therapy services.

Pro forma for the transaction, the first-lien term loan will total $883 million.

Upstream Rehab is a Birmingham, Ala.-based provider of outpatient rehabilitation services.

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