Daily News: June 11, 2012

SunTrust, Others Refinance Healthways’ Senior Credit Facilities


Healthways announced that the company has successfully completed the refinancing of its senior credit facilities as of June 8, 2012. The previous facilities, which were set to expire in December 2013, have been replaced with facilities consisting of a five-year term loan A of $200 million and a five-year revolving credit facility of $200 million. Sun Trust Robinson Humphrey led the refinancing effort, with U.S. Bank and Fifth Third Bank serving as joint lead arrangers and joint bookrunners.

“Given the favorable interest rate environment that exists now and the uncertainty of market conditions over the next 18 months, we chose to refinance our facility early. Today’s announcement represents an important statement regarding both our current financial stability and growth expectations for Healthways over the next five years,” said Alfred Lumsdaine, Healthways CFO. “Thanks to the strong commitments from the banks that participated in support of these facilities, we have the ongoing financial flexibility to pursue the significant growth opportunities emerging from the fundamental changes sweeping through healthcare both domestically and abroad.”

The new facilities are priced initially at LIBOR plus a margin of 2.50%. The term loan A will amortize at 5% per year for years one and two, 7.5% for year three and 10% per year for years four and five. At the closing of the facilities, the revolving credit facility had an initial balance of $106 million.

Healthways is an independent global provider of well-being improvement solutions.