MultiPlan launches $2.2 billion term loan at Libor plus 300-325 bps

By Sara Rosenberg

New York, March 10 - MultiPlan Inc. launched on Monday its $2.2 billion seven-year term loan B with price talk of Libor plus 300 basis points to 325 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company's $2,275,000,000 credit facility (B1) also includes a $75 million five-year revolver.

Commitments are due by 5 p.m. ET on March 18.

Barclays and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Starr Investment Holdings and Partners Group from Silver Lake and BC Partners and to refinance existing debt.

Closing is subject to regulatory approvals and customary conditions.

Senior secured leverage is 5 times and total leverage is 7.3 times, the source added.

MultiPlan is a New York-based provider of health care cost management solutions.

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