Hanger Orthopedic firms Nov. 1 launch date for $425 million facility

By Sara Rosenberg

New York, Oct. 25 - Hanger Orthopedic Group Inc. has solidified the previously targeted Nov. 1 bank meeting date to launch its proposed $425 million credit facility (Ba3/BB-), according to a market source.

Bank of America, Jefferies, Oppenheimer, SunTrust and RBC are the lead banks on the deal.

The facility consists of a $100 million revolver and a $325 million term loan B.

There is a $150 million accordion feature.

Proceeds will be used to help fund the acquisition of Accelerated Care Plus, a Reno, Nev.-based provider of integrated clinical programs for sub-acute and long-term care rehabilitation providers, for about $155 million in cash and to refinance existing bank debt.

Other funds for the transaction will come from cash on hand and $200 million of senior notes.

Closing is expected around Dec. 1, subject to customary conditions, including regulatory approvals and financing.

Hanger is an Austin, Texas-based provider of orthotic and prosthetic patient care services.

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