Cano cuts spread on $655 million of term loans to Libor plus 475 bps

By Sara Rosenberg

New York, Dec. 15 – Cano Health LLC reduced pricing on its $480 million funded seven-year covenant-lite first-lien term loan and $175 million delayed-draw covenant-lite first-lien term loan to Libor plus 475 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.

As before, the strip of funded and delayed-draw term loan debt has a 25 bps step-down at special purpose acquisition company closing and/or a 25 bps step-down at B2/B corporate family ratings, a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The delayed-draw term loan has a ticking fee of half the margin from days 31 to 60 and the full margin thereafter.

The company’s $685 million of credit facilities (B3/B) also include a $30 million revolver.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Commitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used to refinance existing debt and fund a shareholder distribution.

In November, the company announced a merger agreement with Jaws Acquisition Corp., a special purpose acquisition company, in a transaction that values Cano Health at $4.4 billion.

The business combination is expected to deliver up to $1.49 billion of gross proceeds, including the contribution of up to $690 million of cash held in Jaws Acquisition’s trust account and an $800 million concurrent private placement of common stock of the combined company.

Closing on the merger is expected at the end of the first quarter or the beginning of the second quarter of 2021, subject to approval by Jaws Acquisition’s shareholders and other customary conditions.

Cano Health is a Miami-based tech-powered, value-based care delivery platform.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.