Aveanna flexes $221 million in term loans to Libor plus 550 bps

By Sara Rosenberg

New York, June 28 – Aveanna Healthcare LLC raised pricing on its $171 million incremental first-lien term loan B and $50 million first-lien delayed-draw term loan B to Libor plus 550 basis points from Libor plus 525 bps, according to a market source.

Additionally, the original issue discount on the term loan debt was changed to 96 from 98, and the 101 soft call protection that will apply to the incremental and the existing first-lien term loan was extended to one year from six months, the source said.

As before, the term loan debt has a 1% Libor floor, delayed-draw term loan availability is 12 months and there is a ticking fee on the delayed-draw loan of half the margin from days zero to 30 and the full margin thereafter.

The funded and delayed-draw term loans are offered as a pro rata strip.

There is 50 bps MFN for 12 months on the incremental and the existing term loan, quarterly lender calls are required, and the agreement requires the repayment of first-lien facilities on a pro rata basis with insurance proceeds received in relation to the Enteral reserve insurance suit, the source continued.

Barclays and BMO Capital Markets are the bookrunners on the $221 million in term loans (B2/B-).

Commitments are due at noon ET on Friday, the source added.

Proceeds will be used to fund the acquisition of Premier Healthcare Services LLC.

Bain Capital is the sponsor.

Aveanna Healthcare is an Atlanta-based pediatric home health care company. Premier Healthcare is a Pasadena, Calif.-based provider of pediatric services.

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