Apria Seeks Reprice After Investigation Fizzles

  • 05 Jun 2002
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Apria Healthcare is reportedly looking for a 100 basis points cut on it's $175 million "B" loan after a government investigation into the company's Medicare billing practice led nowhere. "The hot market and shortage of paper is also allowing issuers to return to the market and get cheaper deals," said a banker. Bank of America is leading the BBB-/Ba1 deal and is looking to take pricing from LIBOR plus 3% through a 100% amendment. One banker familiar with the deal said, "the government cost the company a lot of money unnecessarily."

When the deal was in syndication last year the term loan "B" was originally set at $200 million and was priced at LIBOR plus 2 1/2%. After being nearly twice oversubscribed, pricing was flexed down 1/8% and a $25 million piece was transferred to the pro rata. But as allocations were to be completed, Apria disclosed the government investigation of the company could amount to claims between more than $9 billion. Pricing had to be pushed up 5/8% to keep investors committed. James Baker, cfo of Apria, did not return calls.

  • 05 Jun 2002

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3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

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