Medical Card Systems launches $175 million five-year term loan at Libor plus 900-1,000 bps

By Sara Rosenberg

New York, Aug. 11 - Medical Card Systems launched its $175 million five-year term loan on Wednesday with price talk of Libor plus 900 basis points to 1,000 bps with a 2% Libor floor and an original issue discount of 98, according to a market source.

Prior to the launch, talk was circulating in the Libor plus 950 bps area, with the Libor floor and the original issue discount still to be determined.

The term loan has soft call protection of 102 in year one and 101 in year two, the source said.

Also, there is a 75% excess cash flow sweep, and amortization talk is 5% to 10% per year.

Jefferies and Deutsche Bank are the lead banks on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend.

Senior leverage is 1.6 times.

Medical Card Systems is a managed care provider in Puerto Rico.

© 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.