SpecialtyCare shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 21 – SpecialtyCare upsized its six-year covenant-light first-lien term loan to $230 million from $212 million and downsized its seven-year second-lien term loan to $65 million from $83 million, according to a market source.

Also, the original issue discount on the second-lien term loan firmed at 99, the tight end of the 98.5 to 99 talk, the source said.

The second-lien term loan is still priced at Libor plus 825 bps with a 1% Libor floor, and the debt continues to include hard call protection of 102 in year one and 101 in year two.

Pricing on the first-lien term loan remained at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.5, and the debt still has 101 soft call protection for six months.

On the first-lien term loan, a step-down was added to Libor plus 400 bps when net first-lien leverage is less than 4.25 times.

Furthermore, the MFN sunset was removed, the source added.

The company’s $340 million of credit facilities also provide for a $45 million five-year revolver.

Antares Capital is the lead on the deal that allocated on Friday afternoon.

Proceeds will be used to help fund the buyout of the company by Kohlberg & Co.

SpecialtyCare is a Nashville, Tenn.-based provider of outsourced clinical services to hospitals and health systems.

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