Physiotherapy cuts spread on second-lien loan to Libor plus 850 bps

By Sara Rosenberg

New York, May 27 – Physiotherapy Associates lowered pricing on its $45 million seven-year second-lien term loan to Libor plus 850 basis points from talk of Libor plus 875 bps to 900 bps, according to a market source.

Also, the original issue discount on the second-lien term loan was tightened to 99 from 98.5 and the discount on a $105 million six-year first-lien term loan was revised to 99.5 from 99, the source said.

Pricing on the first-lien term loan was unchanged at Libor plus 475 bps with a 1% Libor floor.

The second-lien term loan still has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

Both the first- and second-lien loans are governed by maximum leverage and minimum interest coverage covenants.

The company’s $175 million credit facility also includes a $25 million five-year revolver priced at Libor plus 475 bps with a 1% Libor floor.

The credit agreement includes a 50% excess cash flow sweep.

GE Capital Markets is the lead on the deal.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt remaining from a bankruptcy restructuring in 2013.

Physiotherapy Associates is an Exton, Pa.-based provider of outpatient rehabilitation services and orthotics and prosthetics services.

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