Aurora Diagnostics launches $340 million loan at Libor plus 425 bps

By Sara Rosenberg

New York, May 4 - Aurora Diagnostics Inc. launched its $340 million credit facility (B1/B) on Tuesday with price talk of Libor plus 425 basis points with a 2% Libor floor, according to a market source.

Tranching on the deal is comprised of a $110 million four-year revolver and a $230 million six-year term loan B.

The term loan B is being offered at an original issue discount of 981/2, the source said.

Barclays, Morgan Stanley and UBS are the lead banks on the deal.

Proceeds will be used to refinance existing bank debt, to redeem Aurora Holdings' class Z capital and for acquisitions, working capital and general corporate purposes.

Secured leverage is 3.5 times and total leverage is 4.4 times, the source added.

Commitments are due on May 18.

Closing on the credit facility is expected to occur before the company completes its proposed initial public offering of class A common stock.

Of the total revolver amount, $50 million will be available at the close of the facility and $60 million will be available upon completion of the IPO.

Proceeds from the IPO will be used to acquire Aurora Holdings' units and to increase the company's capitalization and financial flexibility, fund its growth, and for working capital and general corporate purposes.

Aurora is a Palm Beach Gardens, Fla.-based diagnostics company.

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