Covenant, Consolidated place $42.5 million 8¾% notes; Magyar arranges €146 million debt

By Devika Patel

Knoxville, Tenn., Jan. 13 – Friday was relatively active for private placements. Nashville-based co-issuers Covenant Surgical Partners, Inc. and Consolidated Pathology, Inc. privately placed a $42.5 million add-on to their 8¾% senior secured notes due Aug. 1, 2019 (B3/B-) at 94.5 to yield 11.2% via bookrunner William Blair & Co.

Covenant Surgical Partners is a privately held owner and operator of ambulatory surgery centers. Consolidated Pathology is a Covenant affiliate that owns the pathology labs managed by Covenant,

Also, Budapest-based telecommunications services provider Magyar Telecom BV expects that the financing for its acquisition by an affiliate of China-CEE Fund will include a new €130 million credit facility and a €16 million PIK facility.

The credit facility will include a €120 million term loan and a €10 million revolver, both to be arranged by Unicredit SpA. As an alternative to euros, the loans may be denominated in Hungarian forints.

Affiliates of the purchasing fund will also provide a €16 million second-lien PIK facility, which will have a coupon of Libor plus 1,200 basis points in the first three years and Libor plus 1,250 bps in subsequent years.

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