Hill-Rom Holdings obtains new $1 billion term loan A, $1.2 billion revolving facility

By Sarah Lizee

Olympia, Wash., Aug. 30 – Hill-Rom Holdings, Inc. entered into a senior credit agreement on Friday with JPMorgan Chase Bank, NA as administrative agent for a new $1 billion senior secured term loan A facility and a new $1.2 billion senior secured revolver, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan, BofA Securities, Inc., Citizens Bank, NA, MUFG Bank, Ltd., PNC Capital Markets LLC and Wells Fargo Securities, LLC are joint bookrunners and joint lead arrangers. Bank of Nova Scotia and Fifth Third Bank are co-syndication agents. Capital One, NA, Goldman Sachs Bank USA, TD Bank, NA and Citibank, NA are co-documentation agents.

Loans bear interest at Libor plus 125 basis points to 175 bps, based on first-lien net leverage ratio. The commitment fee ranges from 17.5 bps to 30 bps and is also based on first-lien net leverage ratio.

Interest is initially Libor plus 130 bps, and the commitment fee is 20 bps.

Proceeds were used to pay off existing borrowings under the company’s amended and restated senior credit agreement dated Sept. 21, 2016, which included a $1,462,500,000 senior secured term loan A facility, of which about $938.4 million in principal amount remained outstanding on the closing date, and $700 million senior secured revolver.

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