MBF Healthcare $285 million credit facility to include $20 million delayed-draw loan

By Sara Rosenberg

New York, Feb. 15 - MBF Healthcare Acquisition Corp.'s proposed senior secured credit facility can carry a maximum size of $285 million being that the deal includes a $20 million first-lien delayed-draw term loan in addition to the other tranches that the company previously outlined, according to a PREM14A filed with the Securities and Exchange Commission Friday.

The delayed-draw term loan is delayed draw for one year, with a five-year final maturity, and may be used to finance permitted acquisitions.

Other tranching on the deal includes a $25 million five-year revolver, a $140 million to $155 million five-year first-lien term loan and a $40 million to $85 million six-year second-lien term loan.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Financial covenants include a maximum total leverage ratio and a minimum fixed charge coverage ratio.

Jefferies is the lead bank on the credit facility that will be used to help fund the acquisition of Critical Homecare Solutions Holdings, Inc. from Kohlberg & Co. LLC for $420 million, subject to a working capital and certain other customary adjustments.

Additional funds for the acquisition will come from about $180 million of cash in its trust account, a $35 million equity issuance and a commitment from MBF Healthcare Partners LP to acquire up to an additional $50 million in shares of its common stock.

Closing is expected in the second or third quarter, subject to stockholder approval and regulatory approvals.

Under the terms of the fee letter with Jefferies, Jefferies is entitled to change (subject to certain limitations) the amount, structure, pricing, terms or collateral package of the credit facility, to ensure a successful syndication within 120 days after the closing date, the filing added.

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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