Matrix Medical trims term loan to $198 million, reworks pricing

By Sara Rosenberg

New York, Oct. 6 – Matrix Medical Network downsized its term loan to $198 million from $238 million and revised price talk to Libor plus 525 basis points to 550 bps from Libor plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 98 from 99 and the maturity was shortened to five years from six years, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Amortization on the term loan is 2.5% in year one, and 5% thereafter, the source continued.

The company’s now $208 million credit facility (B2/B) also includes a $10 million revolver.

SunTrust Robinson Humphrey Inc. is the lead bank on the debt.

Recommitments are due by mid-day on Oct. 13.

Gross leverage is 3.75 times and net leverage is 3.69 times.

Proceeds will be used to help fund the purchase of a stake in the company by Frazier Healthcare Partners.

Initially, Frazier Healthcare Partners was buying a 60% equity interest in the company from Providence Service Corp., with Providence retaining a 40% equity interest. However, Providence is increasing its equity stake to 47%, resulting in the $40 million downsizing to the term loan, the source added.

Matrix Medical is a Scottsdale, Ariz.-based provider of in-home care to help health plans balance cost and revenue, grow membership and improve the quality of care.

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