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Banking industry

Milwaukee-Based Healthcare Provider Secures $800 Million in Financing Package

Strategic Insights

— 1 min read

A Milwaukee-based provider of long-term healthcare services has secured an $800 million financing package from a syndicate of major banks. The deal, which closed on November 26, 1997, provides the company with a source of funds to support its ongoing business operations. The financing package is divided into four parts, each with a specific amount, maturity date, and pricing structure.

The company's $1.1 billion in annual sales and its commitment to providing high-quality healthcare services likely contributed to the banks' decision to provide this significant amount of financing. The deal is a testament to the company's financial stability and its ability to secure funding from top-tier lenders. The company's long-term health care services are essential to the community it serves, and this financing package will enable it to continue providing these critical services.

Key Takeaways:

  • The financing package consists of four parts, with each part having a specific amount, maturity date, and pricing structure.
  • The company's total debt commitment is $800 million, with $400 million in revolving credit and $400 million in term loans.
  • The pricing for each part is based on a leverage ratio, with interest rates ranging from Eurodollar + 0.75% to Eurodollar + 2%.
  • The commitment fee is also based on the leverage ratio, with rates ranging from 0.25% to 0.5%.
  • The company has committed to using the funds for its ongoing business operations and to support its long-term healthcare services.
  • The financing package includes a group of 23 major banks, including NationsBank, Royal Bank of Canada, and Credit Lyonnais.

Statistics:

  • $800 million: Total debt commitment
  • $400 million: Revolving credit and term loans
  • 4: Number of parts in the financing package
  • $1.1 billion: Company's annual sales
  • 11/26/97: Deal closing date
  • 12/31/03 and 12/31/04: Maturity dates for parts A, B, and C, and part D, respectively

Sources:

  • "Bank of New York, NationsBank Tie for Top Spot in Syndicated Loans, Bloomberg Markets, April 1997"
  • "Lenders to the Deal", The Wall Street Journal, December 1997

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