J.P. Morgan Completes Amendment of Team Health Facility
Team Health Holdings Inc., a provider of outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers in the United States, announced that it has completed the amendment to its senior credit facility. J.P. Morgan Securities arranged the refinancing.
“We are very pleased to have completed this amendment to our senior credit facility. We have extended our debt maturities, as well as increased borrowing capacity with the expansion of our revolving and term loan A facilities, all at attractive rates. This will provide our Company with additional financial capacity and a solid capital structure as we pursue additional opportunities for growth,” said Greg Roth, TeamHealth’s president and chief executive officer.
The amendment increased the company’s existing term loan A facility to $275 million from the current outstanding amount of $140.6 million and increased the borrowing capacity of the revolving credit facility to $250 million from the current $225 million. These increases provide the company with additional borrowing capacity of $159 million.
The maturities of both the term loan A facility and revolving credit facility have been extended until November 1, 2017. The company will see a 50 basis point improvement in pricing on both the term loan A and the revolver with pricing based upon a grid tied to the company’s net leverage ratio, but initially set at LIBOR + 1.75%.
The company said $85 million of the net cash proceeds from the increased term loan A was used to repay outstanding borrowings under the revolving credit facility with remaining proceeds retained for other future general corporate purposes. The existing $250 million term loan B facility was not subject to the amendment and remains in place with current terms and conditions.
Previously on abfjournal.com: