Acadia Healthcare launches $500 million term B at Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 28 – Acadia Healthcare Co. Inc. launched on Wednesday its $500 million seven-year covenant-light term loan B (Ba2) with price talk of Libor plus 400 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

Amortization on the loan is 1% per annum.

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.

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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