Jordan Health sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, April 26 – Jordan Health Services (BW NHHC HoldCo Inc.) released price talk on its $660 million seven-year first-lien term loan, $75 million seven-year delayed-draw for 24 months first-lien term loan, $195 million eight-year second-lien term loan and $25 million eight-year delayed-draw for 24 months second-lien term loan with its bank meeting on Thursday, according to a market source.

Talk on the first-lien term loan debt is Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan debt is Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source said.

The delayed-draw term loans have a ticking fee of 1% for months one to eight, 2% for months nine to 16 and 3% for months 17 to 24.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $1,035,000,000 of senior secured credit facilities also provide for an $80 million five-year revolver.

Jefferies LLC, Deutsche Bank Securities Inc., RBC Capital Markets, CIT and Golub are the lead arrangers on the deal.

Commitments are due on May 10, the source continued.

Proceeds will be used to fund the acquisition of Jordan Health by Kelso & Co. and Blue Wolf Capital Partners from Palladium Equity Partners LLC and subsequent merger with Great Lakes Caring Home Health and Hospice and National Home Health Care.

Prior to the bank meeting, the first-lien term loan was upsized from $650 million and the second-lien term loan was upsized from $190 million and these extra proceeds will be used to fund one near-term acquisition, the source added.

The combined company is expected to be the fifth largest home health care provider in the United States, with 221 locations across 15 states in the Northeast, Midwest and Southern regions.

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