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Agiliti Health lines up $200M add-on term loan to finance acquisition

Agiliti Health Inc. is in the market with a $200 million add-on to its first-lien term loan due January 2026 to fund an acquisition, according to sources. A lender call is scheduled for 11 a.m. ET on Nov. 16, and commitments to the J.P. Morgan-led deal will be due at noon ET on Nov. 20.

Price talk is outlined at L+300 with a 0.75% Libor floor, offered at 98.5-99. There is a pricing step-down to L+275 at 3.75x first-lien net leverage. It will be covered by the existing 101 soft call protection that runs through April 16, 2021.

At talk, the yield to maturity is around 4.03%-4.14%.

The issuer in September completed a $150 million non-fungible incremental term loan B due January 2026 at L+300, with a 0.75% floor. Agiliti in October 2018 placed its original $660 million covenant-lite TLB due January 2026 to finance the acquisition of Universal Hospital Services by Federal Street Acquisition Corp., a blank-check company sponsored by Thomas H. Lee Partners. Another $125 million was tacked on in February. Pricing on that facility is L+300, with a 0% floor and a step to L+275 at net senior secured leverage of less than 3.75x. A $240 million second-lien term loan was issued in late 2019 to fund a dividend.

Existing facility ratings are B+/B1, and corporate ratings are B/B2.

Agiliti Health Inc. is a nationwide provider of end-to-end healthcare technology management and service solutions. The company announced on Nov. 10 that it has confidentially submitted a draft S-1 registration statement with the SEC for the proposed initial public offering of its common stock.