Upstream Rehab talks $310 million incremental term loan at 99.5 OID

By Sara Rosenberg

New York, July 14 – Upstream Rehab (Upstream Holdco Inc.) launched on Wednesday its fungible $310 million covenant-lite incremental first-lien term loan (B2/B) due November 2026 with original issue discount talk of 99.5, according to a market source.

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.

The incremental term loan is getting 101 soft call protection for six months.

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

Commitments are due at 5 p.m. ET on July 21.

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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