Cano Health launches $295 million incremental term loan at 99.5 OID

By Sara Rosenberg

New York, June 16 – Cano Health LLC launched on Wednesday its fungible $295 million incremental covenant-lite first-lien term loan due November 2027 with original issue discount talk of 99.5, according to a market source.

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.

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

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

Commitments are due at 5 p.m. ET on June 23.

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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