Select Medical to launch $150 million add-on term loan B on Thursday

By Sara Rosenberg

New York, Aug. 1 - Select Medical Corp. is scheduled to hold a conference call at 2 p.m. ET on Thursday to launch an up to $150 million incremental term loan B due June 1, 2018, according to a market source.

J.P. Morgan Securities LLC, Goldman Sachs & Co., Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC and RBC Capital Markets are the lead banks on the deal.

Pricing on the add-on is Libor plus 375 basis points with a 1.75% Libor floor, which is the same as the existing term loan B pricing. The add-on also carries an original issue discount that is yet to be determined, the source said.

Proceeds will be used to call a portion of the company's 7 5/8% senior subordinated notes due 2015.

Select Medical is a Mechanicsburg, Pa.-based operator of specialty hospitals and outpatient rehabilitation clinics.

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