MBF $209 million facility commitment letter provides for expected pricing of Libor plus 500 bps

By Sara Rosenberg

New York, Oct. 2 - MBF Healthcare Acquisition Corp.'s commitment letter for its proposed $209 million senior secured credit facility says that pricing on the deal is expected to be Libor plus 500 basis points with a 3% Libor floor, according to a PRER14A filed with the Securities and Exchange Commission Thursday.

Tranching on the deal is comprised of a $25 million revolver, a roughly $142 million funded term loan and a $42 million delayed-draw term loan.

The filing also said that the delayed-draw loan is expected to have a 150 bps unused fee and the revolver is expected to have a 50 bps commitment fee.

"Notwithstanding the terms of the commitment letter, it is possible that the final terms of the our debt financing agreements will provide for applicable margins and floors that are different than the amounts set forth above," the filing added.

CIT and Jefferies are the lead banks on the deal, with CIT the left lead.

Timing on the launch of the credit is still to be determined. Previously, sources thought the deal might launch this past Wednesday, but that timing never firmed as a result of market conditions.

Proceeds will be used to help fund the acquisition of Critical Homecare Solutions Holdings Inc. from Kohlberg & Co. LLC.

Other financing will come from about $67 million of mezzanine debt, which, according to the filing, is expected to be priced at 14.5%, comprised of somewhere between 12% to 12.5% in cash and the rest in PIK.

MBF Healthcare is a Coral Gables, Fla., blank check company formed to acquire businesses in the health care industry. Critical Homecare Solutions is a Conshohoken, Pa., provider of comprehensive home infusion therapy and specialty infusion services.

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