Banks Increase Coupon on Ardent TL
February 25, 2010
A bank group shopping a $400 million term loan for Ardent Health Services has upped the coupon on the loan to Libor plus 425 bps from Libor plus 400 bps. The OID remains at 98.5.
The banks—Bank of America Merrill Lynch, Barclays Capital and GE Capital—have also arranged a $75 million revolver for the Nashville, Tenn.-based operator of seven acute care hospitals and a number or specialty care facilities in the southern U.S. The senior leverage ratio for this transaction is around 3x.
Ardent plans to use the proceeds to refinance existing debt and to fund a dividend payment to its private equity owner Welsh, Carson, Anderson & Stowe. The company took on a $275 million term loan in 2004 to back its acquisition of Hillcrest HealthCare Systems.
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