Aveanna launches $485 million second-lien loan at Libor plus 875 bps

By Sara Rosenberg

New York, May 15 – Aveanna Healthcare LLC launched on Wednesday its $485 million eight-year senior secured second-lien term loan with price talk of Libor plus 875 basis points with a 1% Libor floor, according to a market source.

The second-lien term loan has call protection of 102 in year one and 101 in year two, the source said.

Of the total second-lien term loan amount, $245 million is incremental debt that will be used to help fund the acquisition of the home health care division of Maxim Healthcare Services, and the remaining $240 million is to extend/reprice wider an existing $240 million second-lien term loan due 2025 that is currently priced at Libor plus 800 bps with a 1% Libor floor.

The $245 million incremental term loan is talked with an original issue discount of 97 and an underwriting fee of 1% for an effective original issue discount of 96, the source continued.

In addition, the incremental term loan has a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

Barclays is the left lead bookrunner and the administrative agent on the deal.

Commitments are due at 5 p.m. ET on May 30, the source added.

Other funds for the Maxim acquisition will come from $520 million of incremental first-lien debt.

Closing is subject to regulatory clearances and other customary conditions.

Bain Capital is the sponsor.

Aveanna Healthcare is an Atlanta-based home health care company.

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