National Mentor to use $300 million term debt, $215 million bonds for management led-buyout

By Sara Rosenberg

New York, May 15 - National Mentor Holdings Inc. plans on using $300 million in senior term loan debt and issuing $215 million in bonds as part of its buyout by management and Vestar Capital Partners, according to a 10-Q filed with the Securities and Exchange Commission Monday.

JPMorgan, UBS Securities and Bank of America are joint lead arrangers and bookrunners on the credit facility.

In addition to funding the buyout, proceeds from the bank and bond debt will be used to refinance the company's existing term loan B and revolving credit facility, and fund a tender offer for its 9 5/8% senior subordinated notes due 2012.

Management and Vestar Capital are buying National Mentor from Madison Dearborn Partners and other stockholders. Vestar has committed to provide $258 million in equity for the transaction.

The acquisition is expected to close in June.

National Mentor is a Boston-based provider of home and community-based human services for individuals with developmental disabilities and acquired brain injuries, as well as for at-risk youth.

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