CRC Health to launch $840 million credit facility on Friday morning

By Sara Rosenberg

New York, March 13 - CRC Health Corp. is scheduled to hold a bank meeting at 9:30 a.m. ET in New York on Friday to launch an $840 million credit facility, according to market sources.

The facility consists of a $65 million revolver, a $475 million first-lien covenant-light term loan and a $300 million second-lien covenant-light term loan, sources said.

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead arrangers on the deal, with Citi the left lead on the first-lien debt and Credit Suisse the left lead on the second-lien debt.

Proceeds will be used to refinance existing debt.

In a news release, the company said it plans to refinance all of the outstanding debt under its existing senior secured credit agreement and senior subordinated bonds and to retire a portion of its parent company debt.

CRC is a Cupertino, Calif.-based operator of addiction recovery centers.

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