Civitas talks $855 million first-lien loan with 450 bps spread at 98.5

By Paul A. Harris

Portland, Ore., Jan. 23 – Civitas Solutions, Inc. set pricing on an $855 million seven-year first-lien term loan, according to a market source.

The deal is coming with a 450 basis points spread to Libor, with a 0% Libor floor, at 98.5.

There is a 101 soft call for six months.

The deal amortizes at 1% annually; the amortization does not apply to a $50 million letter of credit which is part of the $855 million first-lien portion of the credit facility.

The $1.18 billion of credit facilities also include a $125 million revolver, as well as a $200 million second-lien term loan which is being privately placed.

Goldman Sachs is the left lead. UBS, RBC, KeyBank, BMO and Fifth Third are the joint leads.

Proceeds will be used to help fund the buyout of Civitas by Centerbridge Partners LP.

As reported, Civitas is being bought for $17.75 in cash per share, resulting in an enterprise value of about $1.4 billion.

Civitas is a Boston-based provider of home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.

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