Athletico Physical Therapy completes $875M term loan at tight end of talk; terms

Investors have received allocations of the $875 million, seven-year term loan B for Athletico Physical Therapy that priced at the tight end of talk at a spread of 425 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 99.5 via lead arrangers BofA Securities and BMO Capital Markets, according to sources. The term loan entered the aftermarket at a 99.75/100.25 level. Proceeds from the deal will be used to back the acquisition of Pivot Health Solutions, refinance existing debt and add cash to the balance sheet. The $550 million acquisition will also be funded with $220 million of new sponsor equity, rating agencies noted. In addition to the new term loan, financing will include a $100 million revolver due 2027 that is expected to be undrawn at close. Athletico Physical Therapy, a portfolio company of BDT Capital Partners, provides orthopedic rehabilitation services to communities, employers and athletes.

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