By Devika Patel
Knoxville, Tenn., June 29 – BioScrip, Inc. said it arranged a $200 million first lien note facility and a $110 million second lien note facility, under which it will raise $300 million of proceeds.
Both notes mature on Aug. 15, 2020.
Interest on the first lien notes is one-month Libor plus 700 basis points subject to a 1% floor for Libor.
For the second lien notes, interest is one-month Libor plus 925 bps with a 1.25% floor for Libor. BioScrip also has the option to pay the interest in kind at the rate of Libor plus 1,125 bps or to pay a combination of cash at the rate of half of Libor plus 462.5 bps and in kind at the rate of half of Libor plus 562.5 bps.
BioScrip will issue 10-year warrants for 4.99% of its common stock at $2.00 per share to the second lien note purchasers.
Wells Fargo Securities LLC is the collateral agent.
The note purchasers are funds affiliated with Ares Management, LP.
Settlement was expected on June 29.
Proceeds will be used to repay in full all borrowings under the company’s previous senior credit facilities and its priming credit agreement.
The deal is being undertaken to refinance BioScrip’s existing senior credit facility and priming credit agreement.
Also as part of the agreement, the company will receive a $16 million common stock investment through the sale of 6,359,350 share at $2.50 per share to a fund managed by Ares.
BioScrip is a Denver-based provider of infusion and home care management solutions.
| Issuer: | BioScrip, Inc.
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| Issue: | First lien, second lien facilities
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| Amount: | $310 million
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| Price: | $300 million
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| Settlement date: | June 29
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| Investor: | Ares Management, LP
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| Distribution: | Private placement
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| First lien note facility
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| Amount: | $200 million
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| Maturity: | Aug. 15, 2020
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| Coupon: | One-month Libor plus 700 basis points subject to a 1% floor for Libor
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| Second lien note facility
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| Amount: | $110 million
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| Maturity: | Aug. 15, 2020
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| Coupon: | One-month Libor plus 925 bps subject to a 1.25% floor for Libor; option to pay interest in kind at the rate of Libor plus 1,125 bps or to pay a combination of cash at the rate of half of Libor plus 462.5 bps and in kind at the rate of half of Libor plus 562.5 bps
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