A $1.1 billion refinancing for dialysis company DaVita hit the market last week. The deal, led by Credit Suisse First Boston, includes a six-year, $842 million "C" loan priced at LIBOR plus 21/2%. There is also a four-year pro rata component that includes a $144 million "A" loan and a $115 million revolver priced at LIBOR plus 21/4%. There is a 50 basis point up-front fee on the revolver. A CSFB banker did not return calls and an official at DaVita could not be reached by press time.
The refinancing comes just over a year after the company's previous deal launched to investors. The $800 million "B" piece oversubscribed in under a week (LMW, 4/1/02). Buysiders were keen on the company's high predictable cash flow and proven track record in the bank debt market. This loan was priced at LIBOR plus 31/4% and also included a five-year, $150 million revolver and $200 million "A" loan priced at LIBOR plus 23/4%.