ManorCare cuts spread on $575 million loan to Libor plus 350 bps

By Sara Rosenberg

New York, March 1 - HCR ManorCare upsized its credit facility (Ba3/B+) to $575 million from $550 million and reduced pricing to Libor plus 350 basis points from Libor plus 375 bps, according to a market source.

The facility consists of a $175 million revolver, increased from $150 million, and a $400 million term loan.

The term loan still includes a 1.5% Libor floor and is being offered at an original issue discount of 99.

Soft call protection of 101 for one year was added to the term loan, the source said.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to refinance the company's existing term loan and revolver as part of its previously announced sale/leaseback transaction with HCP Inc.

HCR ManorCare is a Toledo, Ohio-based provider of short-term, post-acute services and long-term care.

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