Kindred At Home Hospice launches $1.65 billion of term loans

By Sara Rosenberg

New York, July 20 – Kindred At Home Hospice held a lender call at 2 p.m. ET on Wednesday to launch $1.65 billion of term loans, according to a market source.

The debt consists of a $1.2 billion 5½-year first-lien term loan B (B) and a $450 million six-year second-lien term loan (CCC+).

Talk on the first-lien term loan is SOFR plus 525 basis points with a 0.5% floor and an original issue discount of 92 to 93, and talk on the second-lien term loan is SOFR plus 825 bps with a 0.5% floor and a discount of 91 to 92, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company is also getting a $400 million five-year term loan A (B).

Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Citizens, Mizuho, RBC Capital Markets, Truist and Wells Fargo Securities LLC are the leads on the deal, with Goldman the left lead on the first-lien term loan and Barclays the left lead on the second-lien term loan.

Commitments are due at noon ET on Aug. 2, the source added.

Proceeds will be used to help fund the acquisition of a 60% interest in the company by Clayton, Dubilier & Rice from Humana Inc. for about $2.8 billion. Humana will retain a 40% stake in the company.

Closing is expected this quarter, subject to customary state and federal regulatory approvals.

Kindred At Home Hospice is a provider of home-based personal care and hospice services.

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