J.P. Morgan Amends Team Health Credit Facility
Team Health Holdings, Inc., a provider of outsourced physician staffing solutions for hospitals in the United States, announced that it plans to amend and extend its existing credit facility. J.P. Morgan Securities is arranging the refinancing.
If approved, the proposed amendment would increase the company’s existing term loan A facility from $150 million ($142.5 million outstanding as of June 30, 2012) to $250 million and extend its maturity until 2017; as well as extend the maturity of the five-year $225 million revolving credit facility to 2017. The use of proceeds from the increased term loan A will be used to repay outstanding borrowings under the revolving credit facility and other general corporate purposes. The company expects to pay an interest rate consistent with current market conditions on the term loan A facility and revolving credit facility.
The company will also pay a market based fee to new lenders and existing lenders that agree to extend and amend their term loans and revolving credit commitments. The existing $250 million term loan B facility is not subject to the proposed amendment and will remain in place with current terms and conditions.
The planned refinancing is contingent on several factors, including market conditions, but is expected to close in the fourth quarter of 2012.
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