Apria sets Oct. 2 launch for $150 million asset-based revolver

By Sara Rosenberg

New York, Sept. 24 - Apria Healthcare Group Inc. is scheduled to hold a bank meeting on Oct. 2 to launch its proposed $150 million senior secured asset-based revolving credit facility, according to market sources.

Bank of America, Wachovia and Barclays are the lead banks on the deal.

The revolver is talked at Libor plus 250 basis points, sources said.

The revolver is being obtained in connection with the company's buyout by the Blackstone Group for $21.00 per share in cash. The transaction is valued at about $1.6 billion.

Borrowings under the revolver can be used for working capital and general corporate purposes. Up to $30 million may be drawn under the revolver at close as long as availability is not less than $75 million.

Other financing for the buyout will come from $700 million in equity and the issuance of $1 billion in senior secured notes, which is backed by a senior secured bridge loan.

If the borrowing base under the revolver is less than $150 million but equal to or greater than $100 million, additional notes will be issued to make up for the shortfall.

The acquisition is expected to close in the second half of 2008, subject to customary closing conditions including approval by Apria's shareholders and termination of the Hart-Scott-Rodino regulatory waiting period, which was already obtained.

A meeting for Apria's shareholders has been scheduled for Oct. 10.

Apria is a Lake Forest, Calif., home health care services company.

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