JPMorgan pulled its deal for DaVita this morning after investor pushback caused the bank to rework the terms. The amendment initially asked for pricing of LIBOR plus 1 1/2% on a new $2.68 billion term loan, but pricing was pushed up to LIBOR plus 1 3/4% (CIN, 6/5). Investors had been banging on the price cut for weeks.
DaVita had been looking to refinance debt it borrowed a year ago to back its $3.05 billion acquisition of Gambro Healthcare. The current facility consists of a $279 million term loan "A" and a $2.4 billion term loan "B." The bank was looking to role that into a new $2.68 billion term loan. The company also has a $250 million revolver priced at LIBOR plus 1 3/4% when drawn (5/22).
Earlier in the week the bank was talking about keeping the two tranche structure, taking pricing on the term loan "A" to LIBOR plus 1 1/2% and the term loan "B" to LIBOR plus 1 3/4%.
Last week a spokeswoman said the company does not "speculate or communicate in advance" on what terms the bank would finalize. She also would not comment on whether the company would pull the deal if pricing was pushed back (6/5). A spokeswoman did not return a call for this story.
