Prime Healthcare is getting a $475 million loan, about half of which the health care company plans to use for acquisitions.
The loan, from Healthcare Finance Group, a portfolio company of Fifth Street Finance Corp. (Nasdaq: FSC), is made up of a $225 million asset-based revolving facility and a $250 million senior-secured term loan. The $250 million term loan will be used to complete deals that Prime already has under asset purchase agreements. Pricing on the loan will likely be Libor plus 325 basis points on the revolving facility, with a one percent Libor floor, and Libor plus 450 basis points with a 1.25 percent Libor floor, for the term loan.
The loan is scheduled to be launched on Thursday, Sept. 19.
Prime Healthcare, headquartered in Ontario, Calif., is a hospital management company that operates 23 hospitals in California, Kansas, Nevada, Pennsylvania and Texas. The company bought Providence Medical Center, based in Kansas City, Kan., and Saint John Hospital in Leavenworth, Kan., in April.