Patriot National closes $280 million five-year facility via Cerberus

By Tali Rackner

Norfolk, Va., Nov. 14 – Patriot National, Inc. closed on a new $280 million five-year senior secured credit facility on Nov. 9 with Cerberus Business Finance, LLC as administrative and collateral agent, according to a 10-Q filing with the Securities and Exchange Commission.

The facility consists of a $250 million term loan and $30 million revolving credit facility.

Borrowings bear interest at Libor plus 700 basis points to 725 bps with a 1% Libor floor.

The term loan facility amortizes quarterly beginning on Dec. 31, with quarterly payments of $1.25 million in the first year, quarterly payments of $2 million in the second year and quarterly payments of $2.5 million thereafter, with the remainder due at maturity.

Principal amounts outstanding under the revolver are due and payable in full at maturity.

Financial covenants require Patriot National to maintain a maximum total leverage ratio of total outstanding debt to adjusted EBITDA for the most recently-ended four fiscal quarters of 5.25 times.

The company fully repaid all outstanding obligations on its senior secured credit facility via BMO Harris Bank, NA at closing.

As of Nov. 14, Patriot National had about $106 million in cash.

Based in Fort Lauderdale, Fla., Patriot National provides workers’ compensation and managed care services.

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