Prime Healthcare Services closed a $425 million senior secured revolving credit facility with Royal Bank of Canada (RBC) as lead arranger, bookrunner and sole administrative. Due to strong lender support, the credit facility is expected to be upsized to $450 million in early September.
The new credit facility refinances the existing revolving credit facility that had an August 2024 maturity. The new credit facility closed with commitments from eight banks representing a strong mix of existing lender group holds as well as new investors representing large international, national and regional banks.
“Prime is pleased to refinance the prior Credit Facility one year ahead of maturity at favorable rate terms in a tough market,” Steve Aleman, CFO of Prime Healthcare, said. “Equally important is that the new credit facilities terms are flexible to support Prime’s growth strategies including the company’s acquisition development activities via a negotiated accordion feature that allows, at any time, for an increase to the maximum revolver amount of up to $175 million.”
The revolving credit facility has a five-year maturity out to 2028 and terms were aligned to mature ahead of any notes issued pursuant to the indenture documents. The facility lead arranger, bookrunner and sole administrative agent was Royal Bank of Canada. Other participants included MUFG, Barclays, Siemens Financial Services, Texas Capital Bank, Key Bank, UMB Bank and City National Bank.