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Wells Fargo Securities, Others Close Up To $1B Refi for Premier Inc.

November 19, 2018, 08:32 AM
Filed Under: Healthcare

Premier Inc. announced that its subsidiaries have entered into a new, five-year unsecured revolving facility that provides up to $1.0 billion of borrowing availability. The maximum amount of the facility can be increased by an aggregate $350.0 million, subject to the approval of the lenders.

The new facility matures on November 9, 2023, and replaces and terminates the previous $750.0 million senior unsecured revolving credit facility that was scheduled to mature on June 24, 2019. At the time of its termination, the prior loan agreement, with outstanding borrowings, accrued interest and fees and expenses totaling $100.7 million, was repaid with $100.0 million in borrowings under the new credit facility and the remaining balance with cash on hand. The new facility was provided through a banking syndicate arranged by Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated.

“Our refinancing expands Premier’s access to capital on very favorable terms,” said Craig McKasson, Premier senior vice president and chief financial officer. “The new facility provides greater flexibility to our capital structure as we continue to invest in the long-term growth of our company through successful execution of our business strategy.”

Borrowings under the new credit agreement may be in the form of Eurodollar Rate loans or Base Rate loans, at the option of the borrowers, and bear interest based on the London Interbank Offer Rate (LIBOR) plus 1.000% to 1.500% or the Base Rate plus 0.000% to 0.500%, respectively. The Base Rate is defined as the highest of the prime rate announced by the Administrative Agent, the federal funds effective rate plus 0.50%, the one-month LIBOR plus 1.0%, and 0.0%. On the closing date, the interest rate for the three-month Eurodollar Rate loans was 3.615% and the interest rate for Base Rate loans was 5.250%.

The credit facility is subject to customary covenants, including consolidated net leverage and interest coverage ratios, and customary events of default.


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