ModivCare gets $400 million bridge loan commitment, plans notes

By Sara Rosenberg

New York, Aug. 3 – ModivCare Inc. has received a commitment for a $400 million one-year senior unsecured bridge loan to support its acquisition of VRI Intermediate Holdings LLC, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The company ultimately plans to fund the acquisition with the issuance of $400 million of senior unsecured notes and cash on hand.

Deutsche Bank Securities Inc. and Jefferies Finance LLC are the lead arrangers on the bridge loan, with Deutsche the administrative agent.

Pricing on the bridge loan is Libor plus 425 basis points with a 1% Libor floor. The rate will increase by 50 bps every three months until it hits a specified cap.

The company also has a commitment for a $30 million senior secured revolving facility that is available to refinance its existing revolver if required consents for certain amendments to the revolver are not obtained prior to closing.

Under the agreement, VRI Intermediate, a Franklin, Ohio-based provider of remote patient monitoring solutions, is being bought for $315 million, subject to customary purchase price adjustments.

Closing is expected in the third quarter, pending regulatory approvals and other customary conditions.

ModivCare is a Denver-based technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their patients.

© 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.