Accredo Health has tapped Bank of America for an expanded $275 million acquisition credit backing the $415 million purchase of the specialty pharmaceutical services division of Gentiva, leaving investors excited about owning paper in a "very hot sector." Launch is expected in several weeks, said one buysider, who also bemoaned the paucity of primary new issuance in this area. Pricing and the size of a "B" tranche have not been determined, the buysider said. At closing the transaction will be paid half in cash using the senior secured credit facility, said CFO Joel Kimbrough, in a conference call. The other half will be stock, he added. Accredo has a $60 million revolver with B of A, according to Capital DATA Loanware. B of A officials did not return calls.
Investors Anticipate Accredo Credit