The $2.75 billion term loan "B" for Health Management Associates broke for trading last Tuesday at par 7/8 and then rose and held to trade at 101 1/8, according to a trader. "Everything is still pretty strong," said a market source.
Bank of America launched the credit Jan. 24 along with a six-year, $500 million revolver (CIN, 1/19). The term loan is priced at LIBOR plus 1 3/4%. The deal is being used to pay a special, one-time $10 cash dividend to shareholders, at a total cost of about $2.4 billion. Calls to Robert Farnham, cfo, were not returned.