Daily News: February 3, 2014

Barclays Agents National Mentor Facilities

National Mentor Holdings announced it entered into new facilities, with Barclays Bank, as administrative agent, and a syndicate of banks, to replace its existing senior secured credit facilities.

The new facilities consist of a $600 million term loan facility, of which $50 million was deposited in a cash collateral account in support of issuance of letters of credit under an institutional letter of credit facility, and a $100 million revolving credit facility.

Borrowings under the new facilities bear interest at the Eurodollar rate plus 3.75%, subject to a minimum Eurodollar rate floor of 1.00% in respect of the term loan facility, or an ABR rate plus 2.75%, subject to a minimum ABR rate floor of 2.00% in respect of the term loan facility.

After deducting certain fees and expenses incurred in connection with the new facilities, the company used approximately $548 of proceeds to repay in full all outstanding borrowings under the previously existing senior credit agreement. The company will also use a portion of the proceeds to redeem $38 million of its outstanding $250 million in aggregate principal amount of its 12.50% senior notes due 2018 pursuant to a conditional partial notice of redemption issued on January 27, 2014. The closing of the new facilities satisfied the condition in the notice of redemption, and, as a result, $38 million of the Notes have become irrevocably due and payable on February 26, 2014, the redemption date specified in the notice of redemption.

National Mentor Holdings Inc., which markets its services under the name The MENTOR Network, is a provider of home and community-based health and human services to adults and children with intellectual and/or developmental disabilities, acquired brain injury and other catastrophic injuries and illnesses; and to youth with emotional, behavioral and/or medically complex challenges.