HGI Holdings reveals structure on $365 million credit facility

By Sara Rosenberg

New York, Sept. 1 - HGI Holdings Inc.'s proposed $365 million credit facility (B+) consists of a $50 million five-year revolver and a $315 million six-year term loan, according to a market source.

The deal is expected to launch with a bank meeting in the early to mid-September timeframe.

Goldman Sachs, Jefferies and Morgan Stanley are the lead banks on the deal, with Goldman the left lead.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice LLC and GS Capital Partners from the Jordan Co. and members of the Harrington family.

Other financing for the transaction will come from $150 million of mezzanine debt (CCC+).

The transaction is expected to close in the beginning of the fourth quarter.

HGI is a Cleveland-based mail-order, direct-to-home provider of specialty medical products for chronic disease patients.

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