Physiotherapy Associates Decreases Rate on $100 Million LBO Loan
Physiotherapy Associates Inc., a provider of outpatient rehabilitation services, cut the interest rate on a $100 million term loan B it’s seeking to back the company’s buyout by Court Square Capital Partners, according to a person with knowledge of the transaction.
The six-year debt will pay interest at 4.75 percentage points more than the London interbank offered rate, down from 5 percentage points, said the person, who declined to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Physiotherapy Associates is proposing to sell the loan at 98 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Jefferies Group Inc. is arranging the financing for the Exton, Pennsylvania-based company and investors have until 5 p.m. today in New York to submit commitment, according to the person.
Trevor Gibbons, a spokesman for Court Square, declined to comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t. So-called B loans are mainly bought by non-bank lenders such as collateralized loan obligations, mutual funds and hedge funds.
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