CHG Healthcare sets talk on $355 million first-, second-lien facility

By Sara Rosenberg

New York, Sept. 14 - CHG Healthcare Services released price talk on its $355 million credit facility following Tuesday's 10:30 am ET bank meeting, according to a market source.

The $70 million revolver and $225 million first-lien term loan are both being guided at Libor plus 500 basis points to 550 bps, and the $60 million second-lien term loan is being guided at Libor plus 900 bps to 950 bps, the source said.

All tranches have a 1.75% Libor floor.

The revolver is being offered with upfront fees that are not currently being disclosed.

The first-lien term loan is being offered at an original issue discount of 98 and has 101 soft call protection for one year, the source continued.

And, the second-lien term loan will be sold at a discount and will have call protection, but details on those terms are still to be determined.

Barclays, Bank of America and Goldman Sachs are the lead banks on the deal, with Barclays the left lead.

Proceeds will be used to repay debt and fund a dividend.

The company is expected to get high single-B corporate ratings.

Leverage is 3.5 times through the first-lien and just under 4.5 times total.

CHG is a Salt Lake City-based health care staffing provider.

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