Stratose sets $265 million first-lien term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Jan. 22 – Stratose Inc. officially firmed pricing on its $265 million first-lien term loan at Libor plus 500 basis points, the low end of the Libor plus 500 bps to 525 bps talk, according to a market source.

Also, the original issue discount finalized at 99, the tight side of the 98.5 to 99 talk, the source said.

The loan still has a 1% Libor floor and 101 soft call protection for six months.

As previously reported, pricing on the loan had been expected to print at the tight end of talk.

Allocations are expected on Monday, and closing is targeted for Tuesday.

SunTrust Robinson Humphrey Inc., Capital One and BMO Capital Markets are the leads on the deal.

Proceeds will be used with a privately placed second-lien term loan to refinance existing debt and fund an add-on acquisition.

Stratose is an Atlanta-based provider of health care cost containment solutions for medical, dental and workers’ compensation payers, third-party administrators, self-funded entities and risk-bearing providers.

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