HGI Holdings sets Tuesday launch for $365 million credit facility

By Sara Rosenberg

New York, Sept. 13 - HGI Holdings Inc. has scheduled a bank meeting for 10:30 a.m. ET on Tuesday to launch its proposed $365 million credit facility (B1/B+), according to a market source.

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

The facility consists of a $50 million five-year revolver and a $315 million six-year term loan, with price talk not yet available.

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.

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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