J.P. Morgan Arranges Kindred Term Loan
Kindred Healthcare completed syndication and pricing of an incremental $200 million term loan, the proceeds of which will be used to repay outstanding borrowings under the company’s $900 million senior secured asset-based revolving credit facility.
Kindred has retained J.P. Morgan Securities to act as sole lead arranger and sole bookrunner for the transaction. JPMorgan Chase Bank is the administrative agent and collateral agent for Kindred’s existing senior secured term loan facility under which the incremental term loan will be borrowed.
This borrowing was issued with 50 basis points of OID and will have the same terms as, and will be fungible with, the outstanding $995 million of term loans under Kindred’s existing senior secured term loan facility. Kindred expects the financing to close on March 10, 2015, subject to customary closing conditions.
“We are pleased to have opportunistically executed this leverage neutral liability management transaction that improves Kindred’s liquidity and maturity profile,” said Stephen D. Farber, Kindred’s EVP and CFO.
Louisville, KY based-Kindred Healthcare is a healthcare services company with annual revenues of approximately $7.2 billion.