Matrix Medical Network to launch $238 million term loan on Wednesday

By Sara Rosenberg

New York, Sept. 12 – Matrix Medical Network is scheduled to hold a bank meeting at 11 a.m. ET on Wednesday to launch its proposed $238 million six-year first-lien term loan, according to a market source.

SunTrust Robinson Humphrey Inc. is the lead bank on the debt.

Proceeds will be used to help fund the purchase of a stake in the company by Frazier Healthcare Partners.

Other funds for the transaction will come from $179.7 million in equity.

Under the agreement, Frazier Healthcare Partners is buying a 60% equity interest in the company from Providence Service Corp., with Providence retaining a 40% equity interest.

Closing is expected in the fourth quarter, subject to customary conditions.

Providence will receive gross cash proceeds from Matrix of around $418 million before transaction fees. The transaction values Matrix at about $537.5 million.

Providence intends to use the cash proceeds from the sale to repay in full its term loan and swingline credit facilities and for acquisitions, investments in the long-term development of its other businesses and the return of capital to stockholders through a share buyback program.

Matrix Medical is a Scottsdale, Ariz.-based provider of in-home care to help health plans balance cost and revenue, grow membership and improve the quality of care.

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