CareMore to launch $150 million credit facility Thursday

By Sara Rosenberg

New York, Jan. 24 - CareMore Medical Enterprises is scheduled to hold a bank meeting on Thursday at 1 p.m. ET to launch its proposed $150 million senior secured credit facility (B2/B), according to a market source.

General Electric Capital Corp. and Bank of America are the lead banks on the deal, with GECC the left lead.

The facility consists of a $125 million term loan due 2013 and a $25 million revolver due 2012, with both tranches talked at Libor plus 325 basis points, the source said.

Proceeds will be used to help fund the acquisition of CareMore by JPMorgan Partners and Crystal Cove Partners and take out an existing $70 million loan that was led by GECC. The existing credit facility, which supported an employee stock ownership plan deal, includes a $65 million term loan and $5 million revolver, both priced at Libor plus 325 bps.

Senior and total leverage on the purchase is roughly 3.2 times.

CareMore is a Downey, Calif., managed health care provider serving Medicare beneficiaries in Los Angeles and Orange Counties in California.

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