Concentra Follows Repricing Trend
Concentra Operating Corp. will save $7.9 million annually as a result of an amendment to its $401 million credit facility and the redemption of its 13% senior subordinated notes.
Concentra Operating Corp. will save $7.9 million annually as a result of an amendment to its $401 million credit facility and the redemption of its 13% senior subordinated notes. Concentra amended the credit after speaking with its banks and advisors and seeing other transactions that were occurring in the marketplace, said Dave Dalton, v.p. of corporate planning and analysis for the healthcare company.
The original credit was put into place last August. The amendment consolidated Concentra's two "B" loans into a new $401 million term loan that is priced at LIBOR plus 2 1/2%. The previous $332 million "B" tranche was priced at LIBOR plus 3 3/4% and the $69 million "B1" tranche was priced at LIBOR plus 2 3/4%. In addition, one year call protection was put in place with the amendment.
J.P. Morgan is the lead on the credit. "We've had a long standing relationship with J.P. Morgan," Dalton said. "They've been with us since we took the company private back in August of '99. They've been there through that whole process so we feel pretty comfortable just with everything they bring to the table--their size, the execution they've provided us with prior transactions."