Summit Behavioral sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, Oct. 18 – Summit Behavioral Healthcare LLC released price talk on its $450 million seven-year first-lien term loan (B2/B-), $70 million first-lien delayed-draw term loan (B2/B-) available for 24 months, $180 million eight-year second-lien term loan (Caa2/CCC) and $25 million second-lien delayed-draw term loan (Caa2/CCC) available for 24 months with its lender call on Monday, according to a market source.

Talk on the first-lien term loan debt is Libor plus 400 basis points to 425 bps with one leverage-based step-down and one initial public offering-based step-down, a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan debt is Libor plus 700 bps to 725 bps with a 0.75% Libor floor and a discount of 99, the source said.

The first-lien term loan debt has 101 soft call protection for six months, and the second-lien term loan debt has hard call protection of 102 in year one and 101 in year two.

The company’s $800 million of credit facilities also include a $75 million five-year revolver (B2/B-).

Jefferies LLC, BofA Securities Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Commitments are due at 2 p.m. ET on Oct. 28, the source added.

Proceeds will be used to help fund the buyout of the company by Patient Square Capital from FFL Partners and Lee Equity Partners.

Summit Behavioral is a Franklin, Tenn.-based behavioral health services provider with a focus on the substance use disorder and acute psychiatric treatment end markets.

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