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Metropolitan Health sets talk on $355 million credit facility
By Sara Rosenberg
New York, Sept. 12 - Metropolitan Health Networks Inc. came out with price talk on its $355 million credit facility as the deal was relaunched to investors on Monday, according to a market source.
The $40 million revolver is talked at Libor plus 500 basis points with a 1.5% Libor floor and an original issue discount of 99, the $240 million first-lien term loan is talked at Libor plus 550 bps with a 1.5% floor and a discount of 981/2, and the $75 million second-lien term loan is talked at Libor plus 1,175 bps with a 1.75% floor and a discount of 98, the source said.
By comparison, when first launched on Aug. 3, the facility consisted of a $25 million revolver talked at Libor plus 475 bps with a 1.5% floor, a $240 million first-lien term loan talked at Libor plus 475 bps with a 1.5% Libor floor and a discount of 99, and a $90 million second-lien term loan talked at Libor plus 900 bps with a 1.75% floor and a discount of 98.
GE Capital Markets Inc. and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.
Proceeds will be used to help fund the acquisition of Continucare Corp. for $6.25 in cash and 0.0414 of a share of Metropolitan common stock per share. The transaction is valued at about $416 million.
Other funds for the acquisition will come from some of Metropolitan Health's and Continucare's cash and investments, which combined for a total of $93 million as of March 31.
Closing is expected around the end of this month. The transaction has already received shareholder approval.
Metropolitan Health is a Boca Raton, Fla.-based health care organization that provides health care services for Medicare Advantage members and other patients in Florida. Continucare is a Miami-based provider of primary care physician services on an outpatient basis.
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