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Amid Investor Demand, Envision Accelerates Response Date on $5B Leveraged Loan

Leveraged loan investors considering the $5.05 billion first-lien term loan backing KKR’s buyout of Envision Healthcare have until tomorrow to commit to the deal, as opposed to the original deadline of Oct. 1, according to sources.

No further changes on the Credit Suisse-led deal were announced.

Price talk for the seven-year covenant-lite TLB is L+400, with a 0% LIBOR floor and an OID of 99–99.5. That works out to a yield to maturity of about 6.59–6.68%. Lenders are offered six months of 101 soft call protection.

The full arranger group includes Citi, Morgan Stanley, Barclays, Goldman Sachs, Jefferies, UBS, RBC Capital Markets, Societe Generale, HSBC, Mizuho, BMO Capital Markets, SunTrust Robinson Humphrey, Credit Agricole, and KKR Capital Markets.

Agencies have assigned ratings of B+/B1 to the first-lien facility, which includes a $300 million revolver due 2023, with a 3 recovery rating from S&P Global Ratings. A $550 million ABL facility is rated BB/Ba1, with a 1 recovery rating. Corporate ratings are B+/B2, with negative and stable outlooks, respectively.

Additional financing for the buyout will come from a $1.625 billion offering of eight-year (non-call three) unsecured notes.

KKR announced in June that it was taking Envision private for $46 per share in a deal valued at roughly $9.9 billion, including debt. Envision (NYSE:EVHC) is a provider of physician-led services and post-acute care, and ambulatory-surgery services. — Jon Hemingway

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