Acadia Healthcare to launch $500 million term loan B on Wednesday

By Sara Rosenberg

New York, Jan. 26 – Acadia Healthcare Co. Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Wednesday to launch a $500 million seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Jefferies Finance LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the joint lead arrangers on the deal.

Amortization on the loan is 1% per annum, the source said.

Proceeds will be used to help fund the acquisition of CRC Health Group Inc. for $1,175,000,000, consisting of up to about 6.3 million shares of Acadia’s common stock and the assumption of CRC’s debt.

Closing is expected this quarter, subject to regulatory review and customary closing conditions.

Acadia is a Franklin, Tenn.-based provider of inpatient behavioral health care services. CRC is a Cupertino, Calif.-based operator of addiction recovery centers.

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