JPMorgan has reworked the deal for TeamHealth, shifting $50 million from the bond portion of the financing to the term loan. The facility now consists of a seven-year, $425 million term loan and $215 million of senior sub notes. A six-year, $125 million revolver, co-led with Lehman Brothers, went unchanged. Pricing remains at LIBOR plus 2 1/4% on both tranches. The deal backs Blackstone Group's buyout of TeamHealth from an investor group made up of Madison Dearborn Partners, Cornerstone Equity Investors, Beecken Petty O'Keefe & Co. and members of the company's management team (CIN, 11/7). The acquisition is expected to close in February 2006, according to a 10Q filed with the Securities and Exchange Commission.
The funds will also be used to refinance an existing credit facility and to redeem 9% notes due 2012. TeamHealth is based in Knoxville, Tenn., and is the largest supplier of outsourced physician staffing and administration services to healthcare providers. The consortium of investors purchased the company in 1999 (11/7). An official at Blackstone could not be reached. A TeamHealth representative said a press release will be issued in the coming weeks.