Team Health wraps term loan amend-and-extend transaction; terms

Team Health Inc. has completed an amend-and-extend of its covenant-lite term loan B that pushes out the maturity of a portion of the TLB by three years to February 2027 from February 2024, according to sources. Pricing on the extended loan is tied to a ratings-based grid, with a spread of 475 basis points over the secured overnight financing rate if corporate ratings are at or better than B-/B3, with stable outlooks, from S&P Global Ratings and Moody's and 525 bps over Sofr if they are worse. There is a 1% Sofr floor and no credit spread adjustment. The extended loan was issued at an original issue discount of 99.5. Total size of the extended term loan is about $1.585 billion, and the nonextended tranche stands at roughly $1.18 billion. Extending lenders were eligible to participate in a partial debt paydown of up to $300 million in aggregate in connection with the transaction, rating agencies noted. Blackstone-backed Team Health provides healthcare-professional staffing and administrative services.

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