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ScionHealth completes $450M term loan wide of talk; terms

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ScionHealth completes $450M term loan wide of talk; terms

Investors have received allocations of the $450 million, seven-year first-lien term loan for ScionHealth that priced wide of talk at L+525, with a 0.50% Libor floor and an original issue discount of 93 via lead arranger Barclays, according to sources. Proceeds from the deal will be used to finance the company's acquisition of Kindred Healthcare LLC's long-term acute care business and short-term acute care hospitals from LifePoint Health Inc. The transaction is also backed by $350 million in class B preferred equity and $10 million in common equity, Ratings noted. In addition, the issuer will have a $450 million asset-based revolver due 2026 with $100 million drawn at close. Based in Louisville, Ky., ScionHealth will consist of 79 hospital campuses in 25 states, including Kindred's 61 long-term acute care hospitals and 18 of LifePoint's community hospitals and associated health systems.

Terms:

Borrower ScionHealth (Knight Health Holdings LLC)
Issue $450 million first-lien term loan
UoP M&A
Spread L+525
Libor floor 0.50%
Price 93
Tenor 7-year
YTM 7.26%
Four-year yield 8.08%
Call protection 101 soft call for 12 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers Barc
Admin agent Barc
Px Talk L+500-525/0.50%/98-99
Sponsor Apollo Global Management
Notes 101 soft call extended from 6 six months.