Kindred Healthcare prices upsized $200 million loan add-on at 99.5

By Paul A. Harris

Portland, Ore., March 6 – Kindred Healthcare, Inc. announced in a Thursday press release that it priced an upsized incremental $200 million term loan at 99.5.

The deal was upsized from $150 million and came rich to price talk of 98.75 to 99.

As reported, the Libor plus 325 basis points loan has a 1% Libor floor.

The new loan paper will be fungible with the outstanding $995 million of term loans under Kindred’s existing senior secured term loan facility, according to the release.

Proceeds will be used to pay down the company’s $900 million senior secured asset-based revolving credit facility.

The financing is expected to close on March 10.

J.P. Morgan Securities LLC was lead arranger and bookrunner. JPMorgan Chase Bank, NA was the administrative agent.

“We are pleased to have opportunistically executed this leverage neutral liability management transaction that improves Kindred’s liquidity and maturity profile,” said Stephen D. Farber, Kindred’s executive vice president and chief financial officer.

The borrower is a Louisville, Ky., health care services company.

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