Healthcare claims processor MultiPlan has launched a $2.28 billion loan offer, looking to raise proceeds for refinancing existing debt and partially funding its reported $4.4 billion buyout by Starr Investment Holdings and Partners Group AG.
No price talk has been set on the package, which consists of a $2.2 billion seven-year term loan and a $75 million revolver, according to sources. Barclays is the lead bookrunner on the offer, joined by JPMorgan. A bankers meeting is scheduled for March 10.
Starr Investment Holdings is headed by former AIG CEO Maurice “Hank” Greenburg, and announced its acquisition of New York-based MultiPlan in mid-February. MultiPlan (rated B3 by Moody’s and B by S&P) is currently owned by PE firms BC Partners Ltd and Silver Lake Management. Moody’s placed Multiplan’s indirect parent, MPH Intermediate Holding Co., under review for a possible downgrade following the buyout announcement.
MultiPlan’s existing rated debt includes a $1.1 billion term B-1 loan due 2017, a $75 million revolver due 2015 and $675 million in 9.875% notes due 2018. All the debt is rated B by S&P, while Moody’s assigns a Ba2 rating to the secured loans and a B3 to the unsecured notes.
MPH holds $750 million in senior PIK debentures rated at Caa1 by Moody’s.
Moody’s estimates MultiPlan’s revenues at $664 million for the 12 months ending last Sept. 30.