OB Hospitalist ups term B to $210 million, firms at Libor plus 425 bps

By Sara Rosenberg

New York, Aug. 9 – OB Hospitalist Group upsized its seven-year covenant-light term loan to $210 million from $200 million and set pricing at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, a pricing step-down was added to Libor plus 400 bps at less than 3.75 times net leverage and the original issue discount was tightened to 99.5 from 99, the source said.

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

The company’s now $230 million of credit facilities, up from $220 million, also include a $20 million five-year revolver.

Antares Capital is the lead on the deal.

Proceeds will be used to help fund the buyout of the company by Gryphon Investors from Ares Management LP.

OB Hospitalist is a Mauldin, S.C.-based provider of OB/GYN hospitalist services.

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