Iasis ups term B to $1.025 billion, sets spread at Libor plus 375 bps

By Sara Rosenberg

New York, April 27 - Iasis Healthcare LLC upsized its seven-year term loan B (Ba3/B) to $1.025 billion from $935 million and firmed pricing at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the Libor floor was moved to 1.25% from 1.5% Libor floor, the source said.

The original issue discount was left unchanged at 99½ and there is still 101 soft call protection for one year.

The company's $1.325 billion credit facility, up from $1.235 billion, still provides for a $300 million five-year revolver (Ba3/BB-) priced at Libor plus 350 bps with a 150 bps upfront fee.

Recommitments are due at noon ET on Thursday and allocations are targeted to go out that afternoon.

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund a $230 million dividend and to help fund the acquisition of St. Joseph Medical Center.

Other funds will come from $850 million of senior notes that were downsized from $935 million. The extra $5 million being raised through the term loan upsizing will be used to fund the original issue discount on the bond deal, the source added. The 8 3/8% notes priced at 99.277 to yield 8½%.

Closing on the credit facility will occur on May 3, concurrent with the bond offering.

Iasis is a Franklin, Tenn.-based owner and operator of medium-sized acute care hospitals.

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