Zelis Healthcare flexes $325 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, June 19 – Zelis Healthcare reduced pricing on its $325 million seven-year covenant-light term loan B to Libor plus 325 basis points from revised talk of Libor plus 350 bps and initial talk in the range of Libor plus 350 bps to 375 bps talk, according to a market source.

Also, the original issue discount on the term loan B was tightened to 99.875 from revised talk of 99.75 and initial talk in the range of 99.5 to 99.75, the source said.

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

The company’s $350 million of credit facilities (B2/B+) also include a $25 million revolver.

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

Proceeds will be used to refinance existing debt.

Zelis Healthcare, a Parthenon Capital Partners portfolio company, is a Bedminster, N.J.-based health care information technology company and provider of end-to-end health care claims cost management and payments solutions.

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