Sheridan Holdings to launch $810 million credit facility on Thursday

By Sara Rosenberg

New York, June 13 - Sheridan Holdings Inc. is scheduled to hold a bank meeting at 10:30 a.m. ET on Thursday to launch a proposed $810 million credit facility, according to market sources.

Credit Suisse Securities (USA) LLC and Barclays Capital Inc. are the joint lead arrangers on the deal and bookrunners with Bank of America Merrill Lynch, UBS Securities LLC and SunTrust Robinson Humphrey Inc.

The facility consists of a $100 million five-year revolver, a $570 million six-year first-lien term loan and a $140 million seven-year second-lien term loan, sources said.

Price talk on the revolver is Libor plus 475 basis points to 500 bps with no floor and an original issue discount of 99. On the first-lien term loan, it is Libor plus 475 bps to 500 bps with a 1.25% Libor floor and a discount of 98, and on the second-lien term loan, it is Libor plus 825 bps to 850 bps with a 1.25% floor and a discount of 98, sources continued.

The first-lien term loan has 101 repricing protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The only financial covenant is a springing revolver covenant, sources added.

Proceeds will be used to refinance existing debt.

Sheridan Holdings is a Sunrise, Fla.-based provider of outsourced health care services.

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