Cano Health to launch $295 million incremental term loan on Wednesday

By Sara Rosenberg

New York, June 15 – Cano Health LLC is set to hold a lender call at 11:30 a.m. ET on Wednesday to launch a fungible $295 million incremental covenant-lite first-lien term loan due November 2027, according to a market source.

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

Pricing on the incremental term loan is Libor plus 450 basis points with a 25 bps step-down at B2/B corporate family ratings and a 0.75% Libor floor, in line with existing term loan pricing.

Original issue discount talk on the incremental term loan is not yet available, the source said.

The incremental term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 23, the source added.

Proceeds will be used to help fund the acquisition of University Health Care, a private medical provider, for $540 million in cash and $60 million in equity.

Pro forma for the transaction, the first-lien term loan will total $549 million.

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

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