MultiPlan Said to Increase Rate on $1.03 Billion Loan Financing
MultiPlan Inc., a health-care cost- management company, increased the rate it will pay on a $1.03 billion term loan it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The debt, maturing in August 2017, will now pay interest at 3 percentage points more than the London interbank offered rate, up from a range of 2.5 percentage points to 2.75 percentage points, said the person, who asked not to be identified because the information is private. The Libor floor will remain at 1 percent and the loan is still being sold at par.
Lenders are also now being offered one-year of soft-call protection of 101 cents, compared with the six-month of protection lenders were offered when MultiPlan began marketing the deal, according to the person.
Leverage, or debt to earnings before interest, taxes, depreciation and amortization, will be 2.7 times on a senior- secured basis and 4.4 times total, according to data compiled by Bloomberg. The debt is rated Ba3 by Moody’s Investors Service and B by Standard & Poor’s.
Barclays Plc, Credit Suisse Group AG and Bank of America Corp. are arranging the financing for the New York-based company and commitments are due by 5 p.m. today in New York, according to the person.
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