Select Medical ups add-on term loan B to $500 million, sets pricing

By Sara Rosenberg

New York, July 29 – Select Medical Corp. upsized its fungible add-on term loan B due March 6, 2025 to $500 million from $400 million and firmed pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

In addition, the original issue discount on the add-on term loan was revised to 99.5 from 99, the source said.

The add-on term loan still has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help repay revolving credit facility borrowings, to redeem in full $710 million of 6 3/8% senior notes due 2021 and for general corporate purposes.

The company is also extending the maturity date of its revolving credit facility by two years to March 6, 2024 and amending its credit agreement to increase the maximum permitted total net leverage ratio.

Select Medical is a Mechanicsburg, Pa.-based health care company.

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