MedAssets pulls $635 million term loan B as market conditions worsen

By Sara Rosenberg

New York, March 15 - MedAssets Inc. cancelled plans to get a $635 million refinancing/repricing term loan B as the market is not as open to these type of transactions as it was a few weeks ago, according to a market source.

The term loan B, which was launched on March 7, was being talked at Libor plus 300 basis points to 325 bps with a 1% Libor floor and a par offer price.

There was 101 soft call protection for one year included in the deal.

Barclays Capital Inc. and J.P. Morgan Securities LLC were acting as the lead banks on the loan.

Proceeds were going to be used to reprice an existing term loan B that was obtained in November at pricing of Libor plus 375 bps with a step-down to Libor plus 350 bps when total leverage is less than 4.5 times and a 1.5% Libor floor. Also, the term loan B has 101 soft call protection for one year and was sold at an original issue discount of 99.

Proceeds from the 2010 loan had been used to fund the acquisition of the Broadlane Group and to refinance existing bank debt.

MedAssets is an Alpharetta, Ga.-based provider of technology-enabled products and services for hospitals, health systems and ancillary health care providers.

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