Agiliti plans $810 million credit facilities for creation from merger

By Sara Rosenberg

New York, Aug. 13 – Agiliti has received a commitment for $810 million credit facilities in connection with its formation through the merger of Federal Street Acquisition Corp. and Universal Hospital Services Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and KeyBanc Capital Markets Inc. provided the debt commitment.

The credit facilities consist of a $150 million revolver and a $660 million delayed-draw first-lien term loan.

Proceeds from the term loan will be used to repay Universal Hospital Services Inc.’s existing debt.

Currently, the company expects Universal Hospital to issue a notice of redemption with respect to its outstanding second-lien notes immediately prior to the merger and that these notes would be redeemed about 30 days following the closing date.

Under the agreement, Federal Street Acquisition and Universal Hospital will combine in a transaction that implies an initial enterprise value for the merged company of $1.74 billion.

Universal Hospital, an Irving Place Capital Management LP portfolio company, is a Minneapolis-based provider of health care technology management and service solutions. Federal Street Acquisition is a special purpose acquisition company sponsored by an affiliate of Thomas H. Lee Partners LP.

Irving Place will retain a minority equity stake in the combined company.

Closing is expected in the fourth quarter, subject to regulatory approvals, Federal Street Acquisition stockholder approval and other customary conditions.

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