Acadia $955 million term B revised to all U.S. dollars, spread reduced

By Sara Rosenberg

New York, Feb. 4 – Acadia Healthcare Co. Inc. removed the £250 million tranche from its $955 million incremental senior secured term loan B (Ba2/BB-) so that all $955 million is in U.S. dollars and lowered pricing to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

The term loan B still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments were due at 2:30 p.m. ET on Thursday, the source said.

Bank of America Merrill Lynch and Jefferies Finance LLC are the leads on the debt.

In addition, the company will be issuing a $135 million incremental term loan A to repay revolver borrowings, the source continued.

Pro forma secured leverage is unchanged at 3.2 times and total leverage is unchanged at 5.4 times.

Proceeds from the term loan B and $390 million of bonds will be used to help fund the acquisition of Priory Group.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.