Schumacher prices $535 million first- and second-lien term loans

By Paul A. Harris

Portland, Ore., Sept. 28 – Schumacher Group priced $535 million of term loan debt on Monday, a market source said.

A $400 million Libor plus 400 basis points seven-year first-lien term loan (B1/B) priced at 99.25. The spread and reoffer price came on top of final talk. Initial spread talk was 425 bps. Initial price talk was 99.

Also a $135 million Libor plus 850 bps eight-year second-lien term loan (Caa1/CCC+) priced at 99. The spread came on top of final spread talk that had widened from 825 bps. The reoffer price came on top of original, unrevised talk.

Both term loans have 1% Libor floors.

The first-lien term loan has 101 soft call protection for six months.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $610 million credit facility also includes a $75 million revolver (B1/B).

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, BMO Capital Markets and Barclays are the leads on the deal.

Proceeds will be used to back the already completed acquisition of Schumacher by Onex Corp. and subsequent purchase of Hospital Physician Partners by Schumacher.

Schumacher is a Lafayette, La.-based provider of outsourced emergency and hospital medicine clinical staffing services. Hospital Physician is a Hollywood, Fla.-based provider of emergency and hospital medicine contract management services.

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