CHG launches $1.58 billion term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Sept. 14 – CHG Healthcare Services Inc. launched on Tuesday its $1.58 billion seven-year first-lien term loan (B1/B) with price talk of Libor plus 375 basis points to 400 bps with a 25 bps step-down at 0.5x inside closing date first-lien leverage, a 0.5% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are the lead arrangers on the deal.

Commitments are due at 10 a.m. ET on Sept. 23, the source added.

The company is also getting a $430 million privately placed second-lien term loan.

Proceeds will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

CHG is a Salt Lake City-based locum tenens staffing company.

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