Odyssey HealthCare plans $150 million credit facility for VistaCare purchase

By Sara Rosenberg

New York, Jan. 16 - Odyssey HealthCare, Inc. plans on getting a new $150 million credit facility to help fund its acquisition of VistaCare, Inc., company officials said in a conference call Wednesday.

GE Capital is the lead bank on the deal.

The facility consists of a $30 million five-year revolver and a $120 million six-year term loan, officials said in the call.

Odyssey plans on significantly delevering over a three- to five-year period, officials added in the call.

Odyssey is buying Scottsdale, Ariz.-based VistaCare, a provider of hospice services, for $8.60 per share, or $147.1 million.

The transaction is structured as a two-step process that includes a cash tender offer for all outstanding shares of VistaCare common stock followed by a cash merger, in which Odyssey would acquire any remaining outstanding shares of VistaCare common stock. The tender offer will commence by Jan. 30 and remain open for at least 20 business days.

Completion of the acquisition is expected in the first quarter, subject to customary closing conditions, including the expiration or termination of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and the tender of at least a majority of VistaCare's outstanding shares.

Odyssey is a Dallas-based provider of hospice care.

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