CHG revises $1.58 billion term loan pricing to Libor plus 350 bps

By Sara Rosenberg

New York, Sept. 22 – CHG Healthcare Services Inc. changed price talk on its $1.58 billion seven-year first-lien term loan (B1/B) to a range of Libor plus 350 basis points to 375 bps from a range of Libor plus 375 bps to 400 bps, and then firmed the spread at Libor plus 350 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was tightened to 99.5 from 99, the source said.

The first-lien term loan still has a 25 bps step-down at 0.5x inside closing date first-lien leverage, a 0.5% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, JPMorgan Chase Bank, Barclays, BMO Capital Markets and Citigroup Global Markets Inc. are the lead arrangers on the deal. Goldman is the agent.

Commitments were scheduled to be due at noon ET on Wednesday, the source added.

The company is also getting a $430 million privately placed second-lien term loan.

Proceeds will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

CHG is a Salt Lake City-based locum tenens staffing company.

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