U.S.-based physician services provider Team Health Holdings, Inc., through its subsidiary, Team Health, Inc., refinanced its existing senior secured Term Loan (tranche B) at $1.312bn. The transaction was led by JP Morgan.
Interest rate on the amended Term Loan was Libor plus 3.00% from LIBOR plus 3.75% (floor of 75 basis points).
The loan matures on 23 November 2022. The issuance reduces the company’s annual cash interest payments by approximately $9.8m.
U.S.-based retailer J. C. Penney has mandated JPMorgan to market its $2bn sub-investment-grade loan.
Proceeds from the issuance offering would be utilized towards refinancing a substantial portion of the company’s debt, which most recently was $4.73bn as of 31 March 2016.
The loans have been rated “B1” and “B+” by Standard & Poors and Moody’s, respectively.
Interest rate on the loan is expected at a floating rate tied to Libor, translating roughly to an annual rate of 5.5%-5.8%.
Moody’s assigned a Ba2 rating to Pilot Travel Center LLC’s proposed $1.3bn, 7-year, senior secured term loan B.
Proceeds from the proposed term loan issuance, along with a $100m draw under its revolver would be utilised towards refinancing its existing $1.4bn term loan B due 2021.
According to Moody’s, Pilot’s Ba2 CFR reflected the company’s good debt protection metrics, meaningful scale, geographic reach, diverse profit stream including high margin non-fuel merchandise and good liquidity.