ATI Physical Therapy unit enters $550 million credit facility

By Marisa Wong

Los Angeles, Feb. 25 – ATI Physical Therapy, Inc. indirect subsidiary ATI Holdings Acquisition, Inc. entered into a credit agreement on Feb. 24 for a $550 million credit facility with Barclays Bank plc as administrative agent and issuing bank, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility refinanced and replaced the company’s prior credit facility.

The new facility is comprised of a $500 million senior secured term loan that was fully funded at closing and a $50 million super priority senior secured revolver with a $10 million letter-of-credit sublimit.

As of the closing date, the term loan bears interest at SOFR plus 725 basis points, with a SOFR floor of 1%. Revolving loans will accrue interest at SOFR plus 400 bps, with no floor, plus 10 bps per annum for one-month interest periods, 15 bps for three-month interest periods and 25 bps for six-month interest periods.

The interest rate may subsequently be adjusted on periodic measurement dates based on the type of loans borrowed and the company’s secured net leverage ratio.

The term loan has a maturity of six years, and the maturity for the revolving loans is five years from the closing date.

The credit facility includes some financial covenants with respect to minimum liquidity and maximum secured net leverage.

The borrower will be required to make some mandatory prepayments in some cases and will also have the option to make prepayments.

ATI is a Bolingbrook, Ill.-based outpatient physical therapy provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.