Morgan Stanley and GE Capital are leading a $160 million facility for Genoa Healthcare Group, a nursing home management company located in Tampa, Fla. The deal consists of a five-year, $20 million revolver, a $90 million first lien and a seven-and-a-half, $50 million second lien. Pricing on the revolver and first lien is LIBOR plus 3 1/2% and pricing on the second lien is LIBOR plus 8%. The deal will fund a dividend of about $120 million for sponsor Warburg Pincus and refinance existing debt.
Moody's Investors Service assigned a B2 rating to the first lien and revolver and a Caa1 to the second lien. In its report the agency said the ratings reflect the company's high level of debt following the deal, its decreased financial flexibility resulting from the conversion of a significant portion of the company's equity to debt and the weak collateral position of the proposed debt. A call to Warburg Pincus was not returned by press time.