U.S. Anesthesia firms $1.6 billion term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Sept. 22 – U.S. Anesthesia Partners set pricing on its $1.6 billion seven-year first-lien term loan B (B2/B) at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and changed the original issue discount to 99.5 from 99, according to a market source.

As before, the first-lien term loan has a 25 bps step-down at 0.75x inside closing date first-lien leverage, a 0.5% Libor floor and 101 soft call protection for six months.

Pricing on the company’s $350 million eight-year second-lien term loan (Caa2/CCC+) remained at Libor plus 750 bps with a 0.5% Libor floor and a discount of 98.5.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA is the left lead arranger on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday and allocations are expected on Thursday, the source added.

Proceeds will be used with cash on the balance sheet to refinance existing debt and pay a dividend to shareholders.

U.S. Anesthesia is a Dallas-based physician-service organization that focuses on providing anesthesia services to patients.

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