An $8.8 million chunk of Mariner Post-Acute Health Network's bank debt traded Monday at 54-55, up from the 52-54 context it had been shuffling around in for weeks. The trade occurred in an auction, with Erste Bank rumored to be the seller. "People seem to be easing up on their health care concerns," a dealer remarked. Mariner, based in Atlanta, Ga., is one of the largest providers of long-term care, operating more than 300 assisted living centers. It has filed for Chapter 11 bankruptcy protection, citing low Medicare reimbursements. Calls to company officials were not returned.
A dealer attributed the spike up in levels simply to more buyers than sellers, rather than a particular trend in the industry or market. Approximately $70 million of the company's bank debt traded in the 46 range earlier this year, as the credit traded up with an improving industry (LMW, 2/11). Mariner has a $1.09 billion credit facility that breaks down into five tranches. Pricing ranges from LIBOR plus 2 3/4 % to LIBOR plus 4%. J.P. Morgan Chase and Bank of America are the lead arrangers, according to Capital DATA Loanware.