ATI Physical Therapy upsizes first-lien loan to $660 million, tightens spread, trims discount

By Paul A. Harris

Portland, Ore., May 2 – ATI Physical Therapy upsized its seven-year first-lien term loan (B1/B) to $660 million from $635 million, a market source said on Monday.

Spread talk tightened to Libor plus 450 basis points from 500 bps. As before, the spread will float atop a 1% Libor floor.

The discount firmed at 99. Previous discount talk was 98 to 99.

The 101 soft call protection was increased to 12 months from six months.

Commitments were due at the close of business on Monday.

Barclays, HSBC Securities (USA) Inc. and Jefferies Finance LLC are the bookrunners.

The credit facility, now sized at $955 million, also features a $70 million five-year revolver and a $225 million eight-year second-lien term loan. The second-lien loan is privately placed.

Proceeds will be used to help fund the buyout of the company by Advent International from KRG Capital Partners.

ATI’s current management team, led by Dylan Bates, will retain a significant minority stake in the company.

Closing is expected this quarter, subject to regulatory approval and other customary conditions.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

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