SpecialtyCare increases first- and second-lien add-on term loan sizes

By Sara Rosenberg

New York, March 19 – SpecialtyCare upsized its fungible add-on first-lien term loan to $29 million from roughly $22 million and its fungible add-on second-lien term loan to $16 million from about $15 million, according to a market source.

Also, the original issue discount on the add-on first-lien term loan was changed to 99.875 from 99.5, the source said.

Pricing on the add-on first-lien term loan and repricing of the company’s existing roughly $229 million first-lien term loan remained at Libor plus 375 basis points with a 25 bps step-down when first-lien leverage is 0.5 times the level at closing and a 1% Libor floor.

All of the first-lien term loan debt is getting 101 soft call protection for six months.

Pricing on the add-on second-lien term loan matches existing second-lien term loan pricing at Libor plus 825 bps with a 1% Libor floor.

The original issue discount on the add-on second-lien term loan remained at 99.

Antares Capital is the lead on the deal.

Proceeds from the add-on term loans will be used to fund a distribution to shareholders and pay transaction fees and expenses, and the repricing will take the existing first-lien term loan down from Libor plus 425 bps with a 1% Libor floor.

As originally proposed, consenting first- and second-lien lenders are getting a 12.5 bps amendment fee.

Closing is expected on Tuesday, the source added.

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

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