Allion Healthcare seeks $110 million facility for buyout by H.I.G.

By Sara Rosenberg

New York, Oct. 19 - Allion Healthcare Inc. is in market with a $110 million credit facility to help fund its buyout by H.I.G. Capital LLC, according to a market source.

Fifth Third Bank is the lead bank on the deal that was launched last week.

The facility consists of a $15 million revolver and a $95 million term loan, with both tranches talked at Libor plus 600 basis points with a 2% Libor floor, the source said.

The original issue discount on the term loan is being talked at 97 to 98, the source added.

Under the purchase agreement, H.I.G. is acquiring Allion in a transaction valued at about $278 million, including the assumption or repayment of about $79 million of debt. Allion stockholders will receive $6.60 per share in cash.

Closing is expected in the first quarter of 2010, subject to customary conditions, including antitrust and regulatory approvals, and stockholder approval.

Allion is a Melville, N.Y.-based provider of specialty pharmacy and disease management services.

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