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HealthSpring gets $350 million facility priced at Libor plus 325 bps
By Sara Rosenberg
New York, Feb. 11 - HealthSpring Inc. closed on a new $350 million credit facility that is initially priced at Libor plus 325 basis points, according to a 10-K filed with the Securities and Exchange Commission on Thursday.
The facility, which was completed on Thursday, consists of a $175 million five-year term loan and a $175 million four-year revolver.
The revolver has a 50 bps commitment fee that can be reduced to 37.5 bps if certain leverage ratios are achieved.
Financial covenants include a maximum leverage ratio, minimum net worth requirements and maximum capital expenditures.
Proceeds from the credit facility, along with cash on hand, were used to fund the repayment of $237 million in existing term loan debt.
There was $25 million drawn under the revolver at close.
HealthSpring is a Franklin, Tenn.-based managed care organization.
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