JPMorgan is leading a $675 million deal for Concentra Operating Corp. to back its $165 million acquisition of Beech Street Corp. and its $48.6 million acquisition of Occupational Health and Rehabilitation. The credit breaks down into a $150 million revolver and a $525 million term loan "B." Price talk is in the LIBOR plus 1/4% range. Syndication of the deal launched last Wednesday. Welsh, Carson, Anderson & Stowe became an investor in the company in 1998.
Based in Addison, Texas, Concentra is a healthcare cost containment service provider. its Investors Service assigned a B1 to both tranches, noting that the ratings reflect Moody's belief the company's improved operating results and free cash flow will continue to support the debt associated with the acquisitions. Thomas Kiraly, executive v.p., cfo and treasurer, could not be reached. Welsh, Carson officials declined comment.