Cano Health revises $295 million incremental term loan OID to 99.75

By Sara Rosenberg

New York, June 23 – Cano Health LLC changed the original issue discount on its fungible $295 million incremental covenant-lite first-lien term loan (B2/B) due November 2027 to 99.75 from 99.5, according to a market source.

Pricing on the incremental term loan is Libor plus 425 basis points with a 0.75% Libor floor, in line with existing term loan pricing. The spread stepped down from Libor plus 450 bps upon the receipt of B2/B corporate family ratings.

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 continued to be due at 5 p.m. ET on Wednesday, 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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