BNP Paribas and Bank of America have pushed back by more than a week the deadline for commitments on Iasis Healthcare as market conditions turn. But the $463 million refinancing is still on track and has not been postponed or cancelled, according to Carl Whitmer, cfo. "It has been a difficult market over the last couple of weeks but, with the growth of investors in bank debt that need access to quarterly results, we wanted to wait for the results to come out." The due date for commitments is now Aug. 9, and third quarter results were announced Aug. 1.
Buysiders are speculating, however, that the company might not proceed with the redux as other refinancing credits are struggling or being pulled. The Franklin, Tenn., owner and operator of acute-care hospitals is targeting a LIBOR plus 31/ 2% spread on both a $125 million revolver and a $338 million "B" loan. Current pricing ranges from 31/ 2% to 41/ 4% over LIBOR for the J.P. Morgan-led loan, said Whitmer. If the loan cannot be secured at the cheaper pricing, Iasis might not bother with the refinancing, one buysider said. It should get done at either LIBOR plus 33/ 4% or LIBOR plus 4%, but will be closer to LIBOR plus 4%, she added. Whitmer declined to comment on how pricing would affect the deal, and he would not elaborate on reasons for the switch of lead banks.