CHG Healthcare talks $217 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, May 12 - CHG Healthcare Services launched its $217 million first-lien term loan on Thursday with price talk of Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 99 7/8, according to a market source.

The term loan includes 101 soft call protection for one year.

Barclays Capital Inc., Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to reprice/refinance an existing first-lien term loan that is priced at Libor plus 550 bps with a step-down to Libor plus 525 bps when leverage is less than 4.0 times. There is a 1.75% Libor floor, and the debt was sold at an original issue discount of 98 when it was obtained in late 2010.

The existing loan will be paid out at 101 due to the presence of soft call protection.

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

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