Psychiatric Solutions' $150 million "B" loan broke for trading in the low 101 territory last week. The seven-year "B" tranche is priced at LIBOR plus 2% and is part of a $475 million credit facility that backs the acquisition of 20 inpatient psychiatric facilities from Ardent Health Services. The bank facility, led by Citigroup, also comprises a four-year, $150 million revolver priced at LIBOR plus 2 1/2%. Pricing on the "B" loan was flexed down in syndication by 50 basis points.
The transaction is valued at $560 million and was funded through $500 million of cash and the issuance of shares. In addition to the bank debt, the company issued $220 million of 7 3/4% senior subordinated notes that was heavily oversubscribed.
Psychiatric Solutions, which offers behavioral health programs to critically ill children, adolescents and adults, is continuing to look for other acquisitions and will seek additional financing, either debt or equity, if the need arises, according to a regulatory filing. Brent Turner, v.p. and treasurer of Psychiatric Solutions, did not return calls.