Acadia sets Wednesday lender meeting for $955 million term loan

By Paul A. Harris

Portland, Ore., Jan. 25 – Acadia Healthcare Co. Inc. set a lender meeting on Wednesday for its $955 million senior secured term loan B, according to a market source.

Bank of America Merrill Lynch and Jefferies Finance LLC are the arrangers.

Proceeds will be used to help fund its acquisition of Priory Group.

The financing also includes a $390 million senior unsecured increasing rate bridge loan, which is expected to be taken out with high yield bonds, sources say.

Under the agreement, Acadia will issue the seller 5,363,000 shares of common stock and pay cash consideration of about £1,275,000,000 for Priory.

Of the cash amount, about £925 million will be used to repay Priory outstanding debt.

Closing is expected by Feb. 16. The transaction is not subject to financing.

Acadia is a Franklin, Tenn.-based provider of inpatient behavioral health care services. Priory is a provider of behavioral health care services in the United Kingdom.

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