CHG firms 99.5 pricing on $140 million add-on loan, moves up timing

By Paul A. Harris

Portland, Ore., Nov. 21 – CHG Healthcare Services Inc. firmed pricing on its $140 million add-on first-lien term loan at 99.5, according to a market source.

The deal, which is coming with a 375 basis points spread to Libor atop a 1% Libor floor, had been talked with an original issue discount of 99 to 99.5.

Timing has been moved ahead. Commitments are due on Wednesday, whereas previous timing left the book open until Nov. 29.

The add-on loan has 101 soft call protection until June 2017, the source said.

The spread, floor and call protection on the add-on term loan match the existing first-lien term loan.

Jefferies Finance LLC is the lead bank on the deal.

Proceeds will be used to fund a dividend.

With this transaction, the company is seeking an amendment to its existing bank debt to allow for the incremental loan and the dividend payment, and to keep the $100 million incremental basket intact, the source added.

Lenders are being offered a 12.5 bps amendment fee.

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

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