Capella Healthcare launches $100 million term loan to investors

By Sara Rosenberg

New York, Dec. 3 – Capella Healthcare Inc. held a conference call at 1 p.m. ET on Wednesday to launch a $100 million seven-year first-lien covenant-light term loan, according to a market source.

Credit Suisse Securities (USA) LLC and Citigroup Global Markets Inc. are the lead banks on the deal.

The term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

Also, the term loan has 101 soft call protection for six months and a springing maturity inside the company’s existing operating company notes.

Commitments are due on Dec. 16, the source added.

Proceeds will be used to fund the acquisition of Carolina Pines Regional Medical Center and its related outpatient services from Community Health Systems Inc.

The transaction is subject to customary regulatory approvals.

Capella Healthcare is a Franklin, Tenn.-based developer and operator of health care facilities. The Carolina Pines Regional Medical Center is comprised of an acute care hospital and an adjoining medical office building in Hartsville, S.C.

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