Kaufman Hall flexes $150 million term loan B to Libor plus 575 bps

By Sara Rosenberg

New York, Jan. 26 – Kaufman Hall & Associates LLC raised pricing on its $150 million six-year term loan B to Libor plus 575 basis points from talk of Libor plus 500 bps to 525 bps, according to a market source.

In addition, the original issue discount on the term loan was changed to 97 from 99, the source said.

Also, amortization on the term loan was increased to 2.5% per annum, stepping up to 5% after year three, from 1% per annum, and the excess cash flow sweep was lifted to 75% with step-downs from 50% with step-downs.

As before, the term loan has a 1% Libor floor, 101 soft call protection for one year and a maximum consolidated total net leverage ratio.

The company’s $170 million credit facility also includes a $20 million five-year revolver.

Recommitments are due by noon ET on Tuesday, the source added.

Barclays and SunTrust Robinson Humphrey Inc. are the bookrunners on the deal.

Proceeds will be used to fund the buyout of the company by Madison Dearborn Partners.

Kaufman Hall is a Skokie, Ill.-based consulting firm and provider of software serving U.S. not-for-profit health care providers.

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