One Call Care sets $420 million second-lien loan at Libor plus 775 bps

By Sara Rosenberg

New York, Nov. 21 - One Call Care Management firmed pricing on its $420 million eight-year covenant-light second-lien term loan at Libor plus 775 basis points, the tight end of the Libor plus 775 bps to 800 bps talk, according to a market source.

Also, the original issue discount on the second-lien term loan was tightened to 99½ from 99, the source said.

The second-lien term loan still has a 1% Libor floor and 101 hard call protection until April 30, 2014, then 103 until the first anniversary of closing, 102 for a year and 101 for the following year.

One Call is also getting an $825 million seven-year covenant-light first-lien term loan priced at Libor plus 400 bps with a step-down to Libor plus 375 bps added when first-lien senior secured leverage is 4.25 times, the source said.

The first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Earlier this week, pricing on the first-lien term loan was increased from talk of Libor plus 350 bps to 375 bps.

As final pricing terms on the facility were set, the MFN was changed to 50 bps for life as the sunset provision was eliminated, and the incremental allowance was revised to $200 million, provided that only $150 million will be available prior to the consummation of the acquisition of Align Networks, from $300 million with $200 million available prior to the acquisition, the source noted.

Additionally, first-lien senior secured leverage is limited to 5 times with respect to the financing of the Align acquisition.

Recommitments were due at 11 a.m. ET on Thursday, the source added.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., RBC Capital Markets, Morgan Stanley Senior Funding Inc., Jefferies Finance LLC and Guggenheim are the lead banks on the $1,245,000,000 deal.

Proceeds will be used to fund the buyout of the company by Apax Partners from Odyssey Investment Partners.

Apax is also purchasing Align Networks, a workers' compensation physical medicine network, from General Atlantic and The Riverside Co., and it expected that following the completion of each transaction One Call and Align will merge.

Closing on the One Call buyout is expected this quarter.

One Call is a Parsippany, N.J.-based provider of specialized cost containment services to the workers' compensation industry.

© 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.