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B of A Showcases Health Care Acquisition Credit

03 Feb 2002

Banc of America Securities will be talking to investors this week preparing the groundwork for the $275 million credit backing Accredo Health's $415 million purchase of the specialty pharmaceutical division of Gentiva Health Services. Buysiders believe the paper will be very desirable, as it falls into a hot sector. In addition to the sector being highly attractive, slow new issuance has left investors scrambling for allocations on certain choice deals this year.

A B of A banker said the deal consists of a $75 million revolver and a $75 million "A" term loan, priced at LIBOR plus 21/ 4%, while a $125 million "B" term loan has a LIBOR plus 23/ 4% spread. The bank meeting will be held Feb. 13.

03 Feb 2002