J.P. Morgan Chase, Bank of America, and First Union are in the market with a $500 million credit to refinance an existing deal for Caremark International, a Birmingham, Ala-based pharmacy benefit management company. A banker close to the deal said the credit is structured as a $300 million revolving credit priced at LIBOR plus 2 3/4 % and a $200 million term loan priced at LIBOR plus 3 1/2 % and it is expected to close by the end of March. Officials at Caremark could not be reached by press time. Early market chatter on the deal is that Caremark's institutional tranche is already oversubscribed as institutional players are showing a lot of interest.
According to Loanware Capital Data, the company currently has an outstanding $1 billion, five-year revolving credit facility priced at LIBOR plus 87.5 basis points attached to a grid linked to the company's leverage ratios.