Kindred Healthcare firms discount on $1 billion term loan B at 99¾

By Sara Rosenberg

New York, March 28 - Kindred Healthcare Inc. finalized the original issue discount on its $1 billion senior secured seven-year term loan B (B1/B+) at 993/4, the tight end of the 99½ to 99¾ talk, according to a market source.

Pricing on the loan remained at Libor plus 300 basis points with a 1% Libor floor.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Financial covenants include a maximum total adjusted leverage ratio of 5.75 times, a minimum consolidated fixed charge coverage ratio of 1.25 times and maximum capital expenditures of $300 million per annum.

The company's $1.75 billion credit facility also includes a $750 million five-year ABL revolver that has pricing of Libor plus 200 bps to 250 bps based on availability, a 37.5 bps undrawn fee and a 25 bps upfront fee.

Covenants in the revolver are a minimum consolidated fixed-charge coverage ratio of 1.25 times and maximum capital expenditures of $300 million per annum.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing secured debt and senior unsecured debt to improve the company's maturity profile, reduce interest expense and provide operational flexibility.

Other funds for the refinancing will come from $500 million in bonds.

Closing is targeted for April 9.

Kindred Healthcare is a Louisville, Ky.-based health care services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.