OB Hospitalist changes $100 million incremental term loan OID to 99.5

By Sara Rosenberg

New York, April 13 – OB Hospitalist Group tightened the original issue discount on its fungible $100 million incremental first-lien term loan to 99.5 from 99.27, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 1% Libor floor.

Antares Capital is the lead on the deal.

Allocations are expected on Thursday, the source said.

Proceeds will be used with a roughly $17 million pre-placed incremental second-lien term loan to fund a shareholder dividend.

The company currently has a $192 million first-lien term loan due August 2024. Pricing on the existing term loan is grid-based. The current rate is Libor plus 400 bps with a 1% Libor floor, but the spread will be stepping up to Libor plus 425 bps based on the grid.

OB Hospitalist is a Greenville, S.C.-based OB/GYN provider with a network of more than 1,000 hospitalists serving 175 partner hospitals across 34 state systems.

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