CareCentrix finalizes $175 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, July 8 – CareCentrix Inc. firmed pricing on its $175 million term loan at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, according to a market source.

Also, the original issue discount on the term loan widened to 97.5 from 99, the 101 soft call protection was extended to one year from six months and the maturity was shortened to six years from seven years, the source said.

The term loan still has a 1% Libor floor.

The company’s $205 million credit facility (Ba3/B) also includes a $30 million five-year revolver.

RBC Capital Markets and Citizens Bank are the leads on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Pro forma for the transaction, senior and total net leverage will be 3.1.

CareCentrix is a Hartford, Conn.-based home health cost containment company.

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