Sun Healthcare delays launch of $435 million credit facility

By Sara Rosenberg

New York, March 6 - Sun Healthcare Group Inc. delayed the launch of its $435 million senior secured credit facility so as to wait for the filing of year-end numbers, according to a market source.

A bank meeting for the deal had been scheduled to take place on Tuesday. No new date has been set as of yet, the source added.

Credit Suisse, CIBC and UBS are the lead banks on the deal.

The facility consists of a $50 million revolver, a $40 million synthetic letter-of-credit facility, a $55 million delayed-draw term loan and a $290 million term loan B.

Proceeds will be used to help fund the acquisition of Harborside Healthcare Corp., a nursing and long-term care company, from Investcorp for about $350 million in cash plus the refinancing or assumption of about $275 million in debt.

Originally, based on filings with the Securities and Exchange Commission, it was expected that the credit facility would carry a size $505 million, consisting of a $430 million seven-year term loan and a $75 million six-year revolver, with both tranches priced at Libor plus 275 basis points.

Sun is an Irvine, Calif., operator of long-term and post-acute care facilities, and a provider of therapy, medical staffing, home care and hospice services.

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