Bear Stearns increased the term loan portion of the credit backing the acquisition of NAMM Holdings by MMM Holdings. The term loan was increased to $425 million from $400 million and pricing was cut from LIBOR plus 3 3/4% to LIBOR plus 3 1/2%. The credit also includes a five-year, $20 million revolver. The deal is expected to close early this week.
The deal also refinances old debt and pays a dividend to sponsor, The Strauss Group, which is the controlling shareholder of MMM and holds a minority interest in NAMM. The holding companies will become subsidiaries of a new holding company, Aveta Holdings.
MMM Holdings is the largest healthcare HMO in Puerto Rico with about 75% market share. NAMM is based in California and contracts with healthcare benefit companies to provide medical assistance to Medicare patients.